US consumer prices fell 0.1 percent in August

In this Aug. 21, 2015 photo, Boston University student Ashley Babula, left, shops for back-to-school items with her mother, Mary, at the CityTarget store in Boston. The Labor Department reports on consumer prices for August on Wednesday, Sept. 16, 2015. (AP Photo/Michael Dwyer) In this Aug. 21, 2015 photo, Boston University student Ashley Babula, left, shops for back-to-school items with her mother, Mary, at the CityTarget store in Boston. The Labor Department reports on consumer prices for August on Wednesday, Sept. 16, 2015. (AP Photo/Michael Dwyer)

By Associated Press September 16, 2015 3 min read

WASHINGTON (AP) – U.S. consumer prices edged down in August, marking the first decline in seven months and fueled by a big drop in gasoline prices.

The Labor Department said Wednesday its consumer price index slipped 0.1 percent in August after a small 0.1 percent rise in July. Gas prices, which had been rising for three months, dropped 4.1 percent amid the recent fall in global oil prices.

The report comes as the Federal Reserve begins two days of meetings to decide whether it will raise interest rates for the first time in nine years. It watches consumer prices closely, and the latest figures may add fuel to arguments that inflation isn’t strong enough yet.

Food prices were up 0.2 percent, led by another surge in egg prices.

Core inflation, which excludes volatile energy and food costs, rose a modest 0.1 percent in August, indicating cost pressures remain a no-show in the economy. Over the past 12 months, overall prices are up just 0.2 percent, while core inflation is up a modest 1.8 percent.