The cost of energy rose for the first time this year and drove the Consumer Price Index 0.3 percent higher in July.

The energy index posted its first increase since January and accounted for over two thirds of the seasonally adjusted all items increase," noted the Labor Department’s CPI July report. "Both the gasoline and household energy indexes turned up in July after a series of declines. The food index, in contrast, declined in July, largely due to the fourth consecutive decline in the fruits and vegetables index."

The CPI is the most closely watched indicator for inflation. In contrast to July, prices during the months of June, May and April fell 0.1 percent, 0.1 percent and 0.2 percent. Consumer prices rose 0.1 percent in March.

Energy prices were up 2.6 percent after falling 2.9 percent in June. Gasoline was the biggest gainer, jumping 4.6 percent against a 4.5 decline in the prior month. Food prices fell 0.1 percent last month as compared to a flat reading in June.

Stripping away volatile energy and food costs, the so called core inflation rate grew 0.1 percent in July.

"Core inflation remains pretty low," Paul Ashworth, a senior economist at Capital Economics, said and was quoted on CNNMoney.com. "But the near-term risks of it plunging all the way to zero or below have certainly receded."

Other areas of prices increases in July included new and used vehicles, clothing, tobacco, and housing. Prices fell for airfares, medical care and household furniture.

Inflation over the past 12 months rose 1.2 percent after an annual inflation of 1.1 percent reported for June. Core inflation gained 0.9 percent on an annual basis, which was the same level as June, May and April — the smallest 12-month increase since January 1966.

The annual core rate remains a notch below the Federal Reserve’s target range of 1 percent – 2 percent.

July Consumer Price Details

The Consumer Price Index for August 2010 is scheduled to be released on Friday, September 17, 2010, at 8:30 a.m. (EDT). The CPI data is used as the core engine for the U.S. Inflation Calculator.

The Consumer Price Index dropped 0.1% in June, marking the third straight monthly decline since March when prices edged 0.1% higher, according to Labor Department data. The index is the most closely watched indicator for inflation. The decline follows a 0.2% slide in May and a 0.1% dip in April. The last time consumer prices fell for three consecutive months was between October and December 2008.

Sliding energy prices were the biggest contributor, down 2.9% in June, the same decline as in May. Gasoline prices plunged 4.5% to account for "most of the decrease," the Labor Department said.

"The CPI is quite low, it’ll reinforce the thinking within the Fed that they can afford to keep interest rates low," Subodh Kumar, chief investment strategist at Subodh Kumar & Associates in Toronto, was noted on Reuters.

Stripping out volatile energy and food prices, the core inflation rate rose 0.2% — the biggest gain since October 2009, after rising 0.1% in May. Core consumer prices were unchanged in April and March.

"Inflation is essentially a non issue right now, and that’s good news for consumers who feel stretched and uncertain. There are some bargains to be had," economist Joel Naroff, president of Naroff Economic Advisors, was quoted by the AP. "Once consumers get more confident and are willing to spend again, they will see that stores are filled with goods at prices they like."

Aside from flat food and falling energy costs, most other areas of the index showed slightly higher prices, calming deflation worries.

"Inflation will be tame because there is so much slack in the economy, but this number should lessen deflation fears somewhat," James O’Sullivan, chief economist at MF Global Ltd. in New York, was quoted on Businessweek.

Deflation is a broad-based decline in consumer prices, or the opposite of inflation. Falling prices may seem like good news for consumers, but only to a certain point. If prices mark sustained deflationary levels that strike below the cost to produce goods and services, economic turmoil can ensue with production cuts, payroll reductions and deepened unemployment.

Inflation over the past 12 months rose 1.1%, following May’s 2.0%, 12-month inflation reading. Core consumer prices increased 0.9% on an annual basis, which was the same level as in May and April — the smallest 12-month increase since January 1966.

The annual core rate remains a notch below the Federal Reserve’s target range of 1% – 2%.

June Consumer Price Details

Rising prices include:

• Used car and truck prices climbed 0.9% in June after rising 0.6% in May. They are up 16.1% over the past
  year.
• Clothing prices jumped 0.8% last month following a more modest increase of 0.2% in May. Prices are still down 0.4% from a year ago, however.
• Shelter costs, which account for about one-third of the CPI, matched May’s 0.1% increase. They were unchanged in April and have declined 0.7% over the past year.
• Natural gas costs climbed 0.6% after declining 1.0% in May.

Declining prices include:

• The energy index fell 2.9% for the second month in a row, after declining 1.4% in April. They have climbed 3.0% over the past 12 months, however.
• Airline fares declined 0.6% in June after rising 1.9% in May and 2.2% in April.
• Gasoline prices dropped 4.5% following a plunge of 5.2% in the prior month. They are 3.0% higher than a year ago.
• Fuel oil prices were down 3.2% after a 1.4% decline in May. They are up 16.6% on the year, however.
• The index for electricity decreased 2.2%. They were down 0.4% during the prior month.
• Fruits and vegetables prices declined 1.3%. They fell 1.1% in May.

Food prices were flat for a second straight month, after rising 0.2% in April. Medical care commodities prices were also flat following a 0.1% increase in May.

The CPI report comes on the heels of the government’s release of the Producer Price Index on Thursday. The PPI is the measure of wholesale inflation, or prices businesses (farms and factories) pay for their goods. Producer prices slid 0.5% in June.

The Consumer Price Index for July 2010 is scheduled to be released on Friday, August 13, 2010, at 8:30 a.m. (EDT).

Consumer prices edged down 0.1% in June, the Labor Department said in its monthly Consumer Price Index report. The CPI is the key reading of inflation at the consumer level. Lower gasoline prices were a major contributing factor.

"Similarly to April and May, a decline in the energy index caused the seasonally adjusted all items decrease in June," the Labor Department stated. "The index for energy decreased 2.9 percent in June, the same decline as in May, with a decline in the gasoline index accounting for most of the decrease. This more than offset an increase in the index for all items less food and energy, while the food index was unchanged for the second month in a row."

Core consumer prices, which exclude the more volatile food and energy costs, rose 0.2% last month.

Inflation over the past 12 months increased 1.1%. The core inflation rate advanced 0.9% over the last year.

Website Site Updates

The buying power of the U.S. dollar can be compared between any dates from 1913 to 2010, as the US Inflation Calculator has been updated with June’s data. The following 2010 inflation rate and data pages were also updated:

• Historic Consumer Index Data
• 2010 Inflation Rates
• Historical Inflation Rates
• Rate of Inflation, Annual Averages

For a more detailed report of consumer prices, read US Annual Inflation at 1.1%.

The Consumer Price Index, the most closely watched indicator for inflation, fell 0.2% in May after edging 0.1 lower in April, the Labor Department said. Flat food costs and lower energy bills led by plunging gasoline prices aided in trimming U.S. consumer prices.

"The weak recovery has its upside, declining energy costs and that is helping take pressure off the cash-strapped consumer," Joel Naroff, president of Naroff Economic Advisors, was quoted by the AP.

Core consumer prices, which exclude volatile food and energy prices, rose 0.1% in May, marking only the second monthly increase this year. The core inflation rate was unchanged in April and March, rose 0.1% in February, and declined 0.1% in January.

"The core inflation rate remains uncomfortably low," Baird said. "The economy may be expanding, but at a pace that isn’t inspiring." Jim Baird, partner and chief investment strategist for Plante Moran Financial Advisors, said in a research note cited by CNNMoney.com. "Muted inflation, and the risk of deflation, seems likely to provide the Fed continued incentive to maintain its accommodative stance."

Deflation is a persistent decrease in general prices, or the opposite of inflation. Falling prices may seem like good news for consumers, but only to a certain point. If prices mark sustained deflationary levels that strike below the cost to produce goods and services, economic turmoil can ensue with production cuts, payroll reductions and deepened unemployment.

Inflation over the past 12 months is up 2.0%, following a 2.2% reading in the 12 months ending in April. Core consumer prices increased 0.9% on an annual basis, which was the same level as April and the smallest 12-month increase since January 1966.

The annual core rate remains a notch below the Federal Reserve’s preferred range of 1%-2%.

May Consumer Price Details

Rising prices include:

• Used car and truck prices were up 0.6% in May after rising 0.2% in April. They are up 16.2% over the past
  year.
• Clothing prices rose 0.2% in May. They were down 0.7% in April.
• Airline fares rose 1.9% in May after increasing 2.2% in April.
• Medical care commodities climbed 0.1% in May. They were up 0.2% in April.
• Shelter costs, which account for about one-third of the CPI, moved up 0.1 in May. They were unchanged in April and have declined 0.7% over the past year.

Declining prices include:

• The energy index fell 2.9% after declining 1.4% in April. However, they have climbed 14.7% over the past 12 months.
• Gasoline prices declined 5.2% in May. They declined 2.4% in April. They are 27.0% higher than a year ago.
• Fuel oil prices fell 1.4% in May after jumping 2.3% in April. They are up 27.1% on the year.
• Natural gas costs were 1.0% lower after declining 4.4%.
• The index for electricity decreased 0.4% after rising 0.7% during the prior month.
• Fruits and vegetables prices declined 1.1%. They were down 0.2% in April.

Food prices were unchanged after rising 0.2% in April.

"We do not have any inflation pressure," Ward McCarthy, chief financial economist at Jefferies & Co. in New York, said today in an interview on Bloomberg Radio. "On the international level, there is tremendous price competition."

The Consumer Price Index, the government’s most closely watched indicator for inflation, edged 0.1% lower in April. The index was helped by mostly subdued energy costs. It was the first decline in the CPI since March 2009, and two notches away from a 0.1% increase most economists were expecting, which was the same level reported in March.

Energy costs dropped 1.4% last month, with gasoline prices leading the declines at minus 2.4%. Food prices were up 0.2%.

Excluding volatile food and energy prices, the so called core inflation rate in April was unchanged for a second straight month.

"Inflation continues to be a non-issue," economist Anika R. Khan of Wells Fargo Investments said in a research note.

Energy prices have soared 18.5% over the last year. That led in driving inflation 2.2% higher over the past 12 months compared to a 2.3% increase during the 12 months ending in March. However, core inflation rate rose a modest 0.9%.

"The continuing stability of the index for all items less food and energy has resulted in an increase over the last 12 months of 0.9 percent, the smallest 12-month increase since January 1966," the Labor Department’s Consumer Price Index Summary report stated.

The 12-month core rate is actually below the Federal Reserve’s comfort range of 1%-2%, which raises deflationary concerns for some.

"The latest CPI data confirms that the Fed has a free hand to concentrate on growth and can extend the ‘extended period’ language for an extended period," Alan Ruskin, strategist at RBS Securities, was quoted on FT.com. "The bad news is that the softness we are seeing in core prices could awaken fears of deflation, notably if we see a renewed downturn."

Deflation is a persistent decrease in general prices, or the opposite of inflation. Falling prices may seem like good news for consumers, but only to a certain point.

"The speed of disinflation is now alarmingly rapid, and it adds weight to our long-held view that the U.S. will come perilously close to deflation over the next year or so," Ian Shepherdson, chief U.S. economist for High Frequency Economics wrote and was cited on MarketWatch.

If prices mark sustained deflationary levels that strike below the cost to produce goods and services, economic turmoil can ensue with production cuts, payroll reductions and deepened unemployment.

April Consumer Price Details

Rising prices include:

• Fuel oil prices jumped 2.3% in April after rising 0.7% in March. They are up 28.0% on the year.
• The index for electricity rose 0.7% following a 2.1% increase in the prior month.
• Used car and truck prices advanced 0.2% after a 0.5% increase. They are up 16.6% over the past
  year.
• Food prices are 0.2% higher, matching the prior month’s increase.
• Medical care expenses rose 0.2% in April. They were up 0.3% in March.
• Airline fares increased sharply in April, rising 2.2%.

Declining prices include:

• Gasoline prices ended down 2.4% after falling 0.8% in March. However, they are 38.3% higher than a year ago.
• A 4.4% decline in natural gas more than offset the above stated increases in fuel oil and electricity.
• Fruits and vegetables prices, which rose 3.4% in March, declined 0.2% in April.
• Clothing prices fell 0.7%. They were down 0.4% in March and are 0.9% lower over the past year.

Shelter costs, which account for about one-third of the CPI, were unchanged in April. They declined 0.1% in March. New vehicle prices were also flat.

The CPI report comes on the heels of the government’s release of the Producer Price Index on Tuesday. The PPI is the measure of wholesale inflation, or prices businesses (farms and factories) pay for their goods. Producer prices in April also declined 0.1% after rising 0.7% in March.

Consumer prices edged down 0.1% in April, the Labor Department said Wednesday in its monthly Consumer Price Index report. The CPI is the government’s key inflation barometer, measuring inflation at the consumer level. Many forecasters were expecting a 0.1% increase. Last month’s decline was led by falling energy prices.

"The index for energy decreased 1.4 percent in April and accounted for the seasonally adjusted decline in the all items index. The indexes for gasoline and natural gas both decreased significantly, outweighing increases in the indexes for fuel oil and electricity," the Consumer Price Index Summary report stated.

Core prices, which strips out volatile food and energy items, remained unchanged last month.

Inflation over the past 12 months increased 2.2%. The core inflation rate rose 0.9% over the last year — the smallest annual gain since January 1966.

The U.S. Inflation Calculator is updated, and the buying power of the U.S. dollar can be compared between any dates from 1913 to 2010. Additionally, the following 2010 inflation rate and data pages were also updated:

• Historic CPI Data (1913 – 2010)
• Current Inflation Rates (2000 – 2010)
• Historical Inflation Rates (1914 – 2010)
• Rate of Inflation, Annual Averages

For a more detailed report of consumer prices in April, read U.S. Inflation Rises 2.2% for the Year.

The Consumer Price Index, the government’s most closely watched reading for inflation at the consumer level, rose 0.1% in March. February’s CPI was flat and marked the first time prices had not advanced since March 2009.

"Inflation as a concern is relegated to the distant future," Guy Lebas, chief fixed income strategist at Janney Montgomery Scott LLC in Philadelphia, said on Bloomberg. "It gives the Fed the flexibility to keep rates low for a while."

Helping to keep prices contained in March were flat energy prices, as increased electricity costs were offset by lower gasoline and natural gas bills. For the past year, however, energy prices have soared 18.3%, with gasoline leading at 41.1%.

Those costs drove inflation up 2.3% over the past 12 months compared to a 2.1% increase the Labor Department reported during the 12 months ending in February.

Core consumer prices, which strip out volatile food and energy prices, were unchanged during the month of March. While core inflation was still up 1.1% from a year earlier, it was the smallest gain since 2004. Month prior respective increases were 0.1% and 1.3%.

"The rate of inflation was very low this month and still somewhat below the historical average," Andres Carbacho-Burgos, an economist for Moody’s Economy.com, was cited on CNNMoney.com. Adding that the annual rate has historically been between 2.4% to 2.5% and core inflation rate between 1.7% to 1.8%.

The 12-month core inflation rate is right within the Federal Reserve’s comfort range of 1%-2%.

March Consumer Price Details

Rising prices include:

• Prices for fruits and vegetables soared 3.4% after decreasing 0.1% in February. (Fresh fruits and vegetables jumped 4.6%.)
• Fuel oil prices rose 0.7% following a 2.4% decrease in February. They are up 27.2% on the year.
• The index for electricity jumped 2.1% after declining 0.5% in the prior month.
• New vehicles prices rose 0.1% for the second straight month. They are 3.0% higher on the year.
• Used car and truck prices climbed 0.5% after a 0.7% increase. They are up 16.3% over the past
  year.
• Food prices moved up 0.2% following a 0.1% increase. They have climbed 0.2% over the past 12 months.
• Medical care expenses rose 0.3% in March after rising 0.5% in February.

Declining prices include:

• Gasoline prices dropped 0.8% after retreating 1.4% in February and surging 4.4% in January. They have soared 41.4% compared to a year ago.
• Natural gas costs were down 0.7% after rising 3.9% in February and increasing 3.5% in January.
• Clothing prices fell 0.4%. The were down 0.7% in February.
• Shelter costs, which account for about 1/3 of the CPI, were retreated 0.1% in March. They were flat in February and are down 0.6% over the past year.

Energy prices were flat in March, after declining 0.5% in February and jumping 2.8% in January, which was the ninth consecutive increase. Energy is up 18.3% in the past 12 months. Additionally, dairy and related products prices remained unchanged in March as well.

To compare how the buying power of the U.S. dollar has changed over time, check out the updated Inflation Calculator.

Annual inflation rose 2.3%, according to the Labor Department’s Consumer Price Index, or CPI. The CPI is the government’s key inflation barometer, measuring inflation at the consumer level. March increases were greatly driven by fresh fruit and vegetables costs, with consumer prices edging up 0.1% for the month compared to a flat reading in February.

"The seasonally adjusted increase was mostly due to an increase in the fresh fruits and vegetables index, which rose 4.6 percent in March and accounted for over 60 percent of the all items increase," the Consumer Price Index Summary report stated.

Stripping out volatile food and energy prices, the core CPI was unchanged last month after rising 0.1% in February. The core CPI rose 1.1% from a year earlier versus the 1.3% reading noted in the 12 months ending in February.

The U.S. Inflation Calculator is updated, and the buying power of the U.S. dollar can be compared between any dates from 1913 to 2010. Additionally, the following 2010 inflation rate and data pages were updated:

• Historic CPI Data (1913 – 2010)
• Current Inflation Rates (2000 – 2010)
• Historical Inflation Rates (1914 – 2010)
• Rate of Inflation, Annual Averages

For a more in depth analysis of March consumer prices, to include price increases and decreases by item, read Consumer Prices Rise 0.1% in March.

The Consumer Price Index (CPI), which is the government’s most closely watched barometer for measuring inflation at the consumer level, was flat in February, breaking away from five straight months of 0.2% increases. The month marks the first time since March 2009 when consumer prices did not climb, indicating tame inflation and reinforcing the Fed’s recent statement saying that inflation would remain subdued for "some time."

"Inflation is certainly no imminent threat to the U.S. economy," David Resler, chief economist at Nomura Securities International Inc. in New York, said on Bloomberg. Resler forecasted that prices would remain unchanged "It ties in with the Fed’s statement," he added.

The energy pricing index fell 0.5% in February after rising 2.8% during the prior month. Food prices rose a modest 0.1%.

Striping out volatile food and energy prices, core consumer prices rose 0.1% last month following a decline of 0.1% in January.

“Core inflation continues to be a non-issue in the near-future, so the Fed’s easy monetary policy can continue into the third and fourth quarter of this year without inflation being an issue,” Adam York, an economist at Wells Fargo, said on CNNMoney.com.

Annual inflation advanced 2.1% versus the 12-month rate of 2.6% reported in January. Costs in the past year were again led by energy prices which increased 14.4%.

The core rate was up 1.3% during the same time frame — the smallest gain since February 2004. The inflation level is right within the Federal Reserve’s comfort range of 1%-2%.

February Consumer Price Details

Rising prices include:

• Used car and truck prices rose 0.7% after a 1.5% increase. They are up 14.1% over the past
  year
• New vehicles prices rose 0.1% following a decline of 0.5% in January. They are 3.5% higher on the year.
• Natural gas costs were up 3.9% in February after increasing 3.5% in January
• Food prices moved up 0.1%, although they are down 0.2% over the past 12 months
• Medical care expenses climbed 0.5% for the second straight month

Declining prices include:

• Energy prices declined 0.5% in February after rising 2.8% in January, which was the ninth consecutive increase. Over the past 12 months, energy has risen 14.4%.
• Gasoline prices fell 1.4% after jumping 4.4%. They have soared 36.8% in the past 12 months.
• Shelter costs, which account for about 1/3 of the CPI, were flat in February. They are down 0.4% over the past year.
• Fuel oil prices were down 2.4% following a 6.1% increase. They are up 19.3% on the year.
• Airfares decreased 0.7% after declining 2.5% in January
• The index for electricity declined 0.5% — its third consecutive decrease
• Clothing prices fell 0.7% following a decline of 0.1%
• Dairy and related products decreased 0.1% after jumping 2.1% in January
• Prices for fruits and vegetables decreased 0.1%

To compare how the buying power of the U.S. dollar has changed over time, check out the updated Inflation Calculator.

While consumer prices were flat in February, the annual inflation rate climbed 2.1%, according to the Consumer Price Index, or CPI data. The CPI is the government’s key inflation barometer, measuring inflation at the consumer level.

By comparison, prices advanced 0.2% back in January — for the fifth straight time, and 12-month inflation ending for the month was at 2.6%.

"Inflation is certainly no imminent threat to the U.S. economy," David Resler, chief economist at Nomura Securities International Inc. in New York, said on Bloomberg. Resler correctly anticipated prices would stand pat.

The core CPI, which excludes volatile food and energy prices, rose 0.1% in February after a decline of 0.1% in January. The core rate is up 1.3% in the past year.

With the second set of CPI data released for the year, the U.S. Inflation Calculator is updated, and the buying power of the U.S. dollar can be compared between any dates from 1913 to 2010. Additionally, the following 2010 inflation rate and data pages were updated:

• Historic CPI Data (1913 – 2010)
• Current Inflation Rates (2000 – 2010)
• Historical Inflation Rates (1914 – 2010)
• Rate of Inflation, Annual Averages

A more in depth analysis of February consumer prices, to include price increases and decreases by item, may be read at U.S. Inflation Rises at 2.1% Annual Rate.