U.S. consumer prices drop 0.2% in June

WASHINGTON (MarketWatch)
The U.S. consumer price index fell a seasonally adjusted 0.2% in June while the core rate, which excludes food and energy, rose 0.3%, the Labor Department said Friday.
Economists surveyed by MarketWatch expected the CPI to fall 0.2% in June, with a 0.2% increase in the core rate.
The overall cost of living for Americans fell for the first time in a year, mainly because of retreating gasoline prices.
Energy costs sank 4.4% in June, marking the largest decline since December 2008.
Still, consumer prices have risen an unadjusted 3.6% over the past year, The core rate has climbed 1.6% in the same span.
In a related report, Labor said real average hourly earnings rose 0.2% in June, almost entirely because of the decline in consumer prices.
Average hourly wages were flat.