Prices in the U.S. recorded its largest fall since 1950 Interannual

U.S. inflation rises 0.7% in June and fell 1.4% in the last twelve months. If you deduct the increase in energy prices, underlying inflation remained at 0.2% in June and 1.7% in the last year.

The cost of living in the U.S. increased in June by rising energy prices, especially gasoline. According to figures from the Department of Commerce, the consumer price index last month rose 0.7% after having risen 0.1% in May. When compared with the figure a year ago, prices fell 1.4%, the biggest decline since 1950. The fall began in April, when it entered into negative figures for the first time in more than half a century.

If we exclude energy prices (gasoline has risen 17.3% in the last month) and food, core inflation, a rate that the Fed is mindful to set its economic policy, was 0 , 2% in June. While the CPI has had its greatest decrease in almost six decades, core inflation in June 2008 to June 2009 was 1.7%.

The fall in consumption and investment have forced companies to cut prices to maintain turnover. The gradual decline that occurs in the oil price in recent months, the analysts foresee a moderation in inflation between now and year end. Most economists had estimated that the increase in the CPI in June was 0.7%.