Consumer prices flat in July as energy retreats

U.S. consumer prices were flat in July as energy costs retreated following a big surge in June. Over the past 12 months, prices dropped the most in nearly six decades as the recession and lower energy costs kept a lid on inflation.
But hold on, people!! Is it even something to worry about? Well,Some economists have expressed concerns that the economy could be headed toward a dangerous period of falling prices, something the U.S. has not experienced since the Great Depression of the 1930s. However, most analysts believe the Federal Reserve has responded aggressively enough to battle the current downturn and prevent outright deflation.
n July, energy costs fell 0.4 percent after having surged 7.4 percent in June, which reflected a big rise in the cost of gasoline and other energy products.
Gas prices, on a seasonally adjusted basis, fell 0.8 percent in July. The average price at the pump is $2.65 per gallon, up from $2.50 a month ago but well below the record high of $4.11 hit a year ago.
Food costs dropped 0.3 percent in July reflecting declines in a number of categories led by a 0.6 percent fall in the cost of dairy products.
Wal-Mart Stores Inc. on Thursday reported its first-ever drop in same-store sales for its overall U.S. business for the quarter. The world's largest retailer said a big factor was price deflation, primarily in grocery products like dairy.
Airline fares rose 2.1 percent in July, while clothing costs jumped 0.6 percent. (Source:Yahoo News)