Consumer prices fell 0.4 percent in June as energy costs dropped

The consumer price index fell 0.4 percent in June on a seasonally adjusted basis, the Bureau of Labor Statistics reported on Tuesday. Jeff Cox at CNBC reported the release. The annual rate slowed to 3.5 percent, from 4.2 percent in May. Economists surveyed by Dow Jones had expected a 0.2 percent monthly decline and a 3.8 percent annual rate.

Core CPI, which excludes food and energy, was flat for the month. It ran at 2.6 percent over 12 months, down from 2.9 percent in May. The energy index fell 5.7 percent but stayed 15.7 percent above a year earlier. Shelter rose 0.1 percent. Food rose 0.2 percent. Apparel fell 0.6 percent. Fed Chairman Kevin Warsh said the print was not a mission accomplished moment.