US inflation and consumer prices flat in June while retail sales sink

Washington

The falling price of gasoline also helped hold down US retail sales, which contracted for the second straight month in June, the Commerce Department reported separately.

Slow inflation has baffled economists given the very low unemployment rate, but the numbers come even as US central bankers continue to say they expect inflation to rebound allowing them to raise the benchmark interest rate gradually.

US consumer prices were unchanged in June as the cost of gasoline and mobile phone services declined further, pointing to benign inflation that could cast doubts …