US consumer prices ease on cheaper energy

U.S. consumer prices dropped 0.1 percent in August, the first decline in nearly two years as energy costs fell in a sign that a slowing global economy is relieving some inflation pressures, government data showed on Tuesday.
The August decline in the Consumer Price Index was in line with forecasts by Wall Street economists surveyed by Reuters and followed a 0.8 percent July jump, a Labor Department report showed.
Excluding volatile food and energy items, so-called core CPI rose 0.2 percent, down from a 0.3 percent July rise. That also matched forecasts.
On a year-over-year basis, overall consumer prices rose 5.4 percent — a moderation from the 5.6 percent year-over-year rise in July — and core prices were up 2.5 percent, the same as in July.
Energy costs tumbled 3.1 percent in August, the biggest drop since October 2006, after rising 4 percent in July.
Housing costs were down 0.1 percent last month, the first decline since early 2003, after climbing 0.6 percent in July. Transportation costs declined 1.5 percent after a 1.7 percent rise in July as gasoline prices dropped by 4.2 percent.