US Consumer Prices Inexpectedly Fall in June

INFLATION - WASHINGTON. U.S. consumer prices unexpectedly fell and the annual increase was the smallest in a year, reinforcing views that the disinflation trend was back on track and drawing the Federal Reserve another step closer to cutting interest rates.

The consumer price index dipped 0.1% last month after being unchanged in May, the Labor Department's Bureau of Labor Statistics said on Thursday. It was the second straight month of tame CPI readings, and could help to bolster confidence among officials at the U.S. central bank that inflation was cooling.