IN JUNE, THE U.S.C.I. MAY HAVE FALLEN BECAUSE OF THE PRICE OF GASOLINE

IN A REPORT DATED 11 JULY, THE US-SMALL SECURITIES ANALYST INDICATED THAT THE OVERALL CPI IN THE UNITED STATES COULD DECLINE BY 0.09 PER CENT IN JUNE, PARTLY DUE TO A SIGNIFICANT DECLINE IN GASOLINE PRICES. THEY ADDED, HOWEVER, THAT THE CORE INFLATION RATE SHOULD REMAIN AT 0.28 PER CENT OR 2.9 PER CENT ABOVE THE RING, PARTLY BECAUSE THE DEMAND ASSOCIATED WITH THE WORLD CUP WAS PUSHING UP SERVICE INFLATION. “BASED ON THIS PROJECTION, WE EXPECT THAT THE CORE PCE WILL AGAIN BE SLIGHTLY STRONGER THAN THE CPI.”