(fxcue news) - Consumer prices in the U.S. unexpectedly edged slightly lower in the month of June, according to a highly anticipated report released by the Labor Department on Thursday. The Labor Department said its consumer price index slipped by 0.1 percent in June after coming in unchanged in May. Economists had expected consumer prices to inch up by 0.1 percent. The unexpected dip by consumer prices largely reflected another steep drop by gasoline prices, which plunged by 3.8 percent in June after tumbling by 3.6 percent in May. The extended nosedive by gasoline prices helped offset a continued increase in shelter costs and another uptick in food prices. Excluding food and energy prices, core consumer prices crept up by 0.1 percent in June after rising by 0.2 percent in May. Core prices were expected to rise by another 0.2 percent. The uptick in core prices reflected the increase in prices for shelter as well as higher prices for motor vehicle insurance, household furnishings and operations, medical care, and personal care. Meanwhile, the Labor Department said prices for airline fares, used cars and trucks, and communication were among those that decreased over the month. The report also said the annual rate of consumer price growth slowed to 3.0 percent in June from 3.3 percent in May. Economists had expected the pace of price growth to decelerate to 3.1 percent. The annual rate of core consumer price growth also slowed to 3.3 percent in June from 3.4 percent in May. The pace of core price growth was expected to remain unchanged. "Another 'very good' inflation report in June supports our call that the Fed can start to lower interest rates in September and by year-end reduce the fed funds rate by 50bps," said Nationwide Chief Economist Kathy Bostjancic. She added, "Importantly, core CPI's benign 0.1% advance allowed the 3-month annualized rate to slow further to 2.1% from 3.3% in May, and the rate is down more than half from the 4.5% recorded in March." On Friday, the Labor Department is scheduled to release a separate report on producer price inflation in the month of June. The producer price index is expected to inch up by 0.1 percent in June after slipping by 0.2 percent in May, while the annual rate of producer price growth is expected to inch up to 2.3 percent from 2.2 percent.