The cost of living in the United States cut down in June, as a quick drop in energy cost offset other price rises. Customer prices fell 0.2%, their first monthly fall in a year; apart from energy and food, prices rose slightly. The annual inflation rate was 3.6%.
Meanwhile a survey of customer confidence suggests US shoppers are feeling more and more gloomy. Uncertainties about falling incomes and rising unemployment pushed confidence to its lowest since March 2009.
According to a survey, the measures of both the current economic conditions and consumer expectations dropped to their lowest since 2009. Un-connectedly, a much-watched estimate of developed activity in the state of New York showed a reduction for the second month in a row, a worse than expected performance.
Previously this week, the chairman of the US central bank, Ben Bernanke, had said that recent price rising would probably be impermanent, because of rising unemployment and slow growth.
But, the rise in middle inflation – which prohibits the cost of energy and food was the biggest monthly gain in three years and some Wall Street analysts continue to believe that inflationary pressures are building.