Consumer Prices, Retail Sales Tame in June

Inflation lapsed to nearly nothing in June, helped by falling prices for gasoline, lettuce, computers and cars, and consumer spending showed signs of slowing in the month, government figures show. The consumer price index rose a scant seasonally adjusted 0.1% last month after climbing a moderate 0.3% in May, the most in a year and a half, the Labor Department said. Excluding the volatile food and energy sectors, prices crept up 0.1%. Food prices were up 0.1% after a worrisome 0.6% surge in May, but prices for lettuce dropped 28.5%. Gasoline costs fell 0.9%. For the first half of the year, inflation ran at a 1.4% annual rate, compared with an 11-year low of 1.7% for all of last year. Much of this year’s improvement was attributable to energy costs, which have fallen during five of the last six months. Meanwhile, retail sales increased a lackluster 0.1% in June, the Commerce Department said. That followed a much more robust 1.2% increase in May, the best in 10 months. Auto sales rose 0.1%, but department store receipts fell 0.3%.