Consumer prices post first decline in 7 months

Washington

PRICES paid by American households declined in August as cheaper gasoline helped keep inflation below the objective of Federal Reserve policy makers.

The consumer-price index dropped 0.1 per cent, the first decline since January, after rising 0.1 per cent in July, Labor Department figures showed on Wednesday. The so-called core measure, which strips out often-volatile fuel and food costs, rose 0.1 per cent for a second month. Goods prices declined, while services barely rose.