Consumer Prices Held Steady in August --- Declining Costs for Energy Keep Index From Rising, Breaking 3-Year Streak
WASHINGTON -- Consumer prices held steady in August, the first time in more than three years that they didn't rise, the Labor Department said.</br></br>Falling energy prices held down the overall retail price level, just as they have been holding down prices at the producer level. The department reported last week that producer prices declined in August for the third month in a row.</br></br>Energy prices have tugged the inflation rate sharply up and down this year, first raising alarm over possible inflationary spirals and then bringing relief that the worst of inflation may be over.</br></br>But many economists are still uncertain over the outlook for inflation. "The good news in a couple of sectors I think should not obscure the fact that inflation continues at unacceptably high levels in a number of key areas," said John Godfrey, chief economist of Barnett Banks Inc. in Jacksonville, Fla.</br></br>Still, even excluding energy, consumer prices posted only a mild 0.2% increase in August. Excluding food as well -- another volatile area, where prices have been moderating -- prices went up only 0.2% also.