only 0.10%, the smallest increase since february. suzanne pratt takes a look at whether inflation is a likely to remain tame. reporter: at this fruit and vegetable market in new york city, prices this summer have been pretty stable. little evidence of the drought that s been destroying crops in the midwest, and virtually no sign of inflation. thanks to a wet, hot summer on the east coast, local produce is plentiful, which helps explain the limited drought effect here. on top of that, businesses are reluctant to pass higher costs on to customers. if you change prices drastically then people won t come back in. we try not to make the world problems, like drought or weather try not to effect our prices as it would like a big company because we feed the neighborhood. reporter: but, perhaps more surprising is the lack of price pressure throughout the economy, despite all the money the federal reserve keeps pumping in. it s put a lot of liquidity into the banks but that liq
drought, retail prices barely budged in july. for the second straight month, the consumer price index was unchanged. core c.p.i., which takes out food and energy costs, edged up only 0.10%, the smallest increase since february. suzanne pratt takes a look at whether inflation is a likely to remain tame. reporter: at this fruit and vegetable market in new york city, prices this summer have been pretty stable. little evidence of the drought that s been destroying crops in the midwest, and virtually no sign of inflation. thanks to a wet, hot summer on the east coast, local produce is plentiful, which helps explain the limited drought effect here. on top of that, businesses are reluctant to pass higher costs on to customers. if you change prices drastically then people won t come back in. we try not to make the world problems, like drought or weather try not to effect our prices as it would like a big company because we feed the neighborhood. reporter: but, perhaps more surp
core c.p.i., which takes out food and energy costs, edged up only 0.10%, the smallest increase since february. suzanne pratt takes a look at whether inflation is a likely to remain tame. reporter: at this fruit and vegetable market in new york city, prices this summer have been pretty stable. little evidence of the drought that s been destroying crops in the midwest, and virtually no sign of inflation. thanks to a wet, hot summer on the east coast, local produce is plentiful, which helps explain the limited drought effect here. on top of that, businesses are reluctant to pass higher costs on to customers. if you change prices drastically then people won t come back in. we try not to make the world problems, like drought or weather try not to effect our prices as it would like a big company because we feed the neighborhood. reporter: but, perhaps more surprising is the lack of price pressure throughout the economy, despite all the money the federal reserve keeps pumping