Consumer inflation tumbles as shoppers hold back

WASHINGTON

…The 12-month decline reflects a 28.1 percent plunge in energy costs, which peaked at this time a year ago, when oil hit a record $147 a barrel and gas crested above $4 a gallon.

Since then, energy prices have tumbled. Other price pressures have disappeared, too, as the country has struggled to cope with waves of layoffs and the worst recession since World War II.

Gasoline prices, on a seasonally adjusted basis, fell 0.8 percent in July. The average price at the pump is $2.65 a gallon, up from $2.50 a month ago but well below the record high of $4.11 a gallon in July 2008.

AP