The Labor Department revealed inflation in the U.S. was flat in June. The U.S. consumer price index, which is closely watched as a critical gauge for the Federal Reserve’s next move, was unchnaged from the prior month.
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The slow pace of inflation has become a major focus after Federal Reserve Chair Janet Yellen hinted in a congressional testimony this week that slow price gains have structure causes. The poor consumer price index numbers come as Fed officials are placing policy changes or further rate hikes on the inflation outlook.
Furthermore, retail sales declined in June month-over-month, unexpectedly falling for a second month and signaling consumers are providing only a modest support for the economy.
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