The consumer price index (CPI) of US has fallen down for the third month in a row in June which has increased concerns over the deflation.

According to the Labour Department the CPI has fell down by 0.1% in this month as compared to the previous month, before this fall the consumer price index fell down 0.2% in May and 0.1% in the month of April.

The main reason behind this fall could be the fall in the fuel prices, which has fell down by 2.9% compared to the previous season. But the economists have suggested that the core inflation rose by 0.2%.

To boost the economic recovery of US the US Federal Reserve has given a huge fund of 1.2 trillion dollars to the US economy. This fall in the prices could create pressure on the Central Bank to take further decision over the economic recovery.

The banks have to think in a separate way to tackle with this issue like long term interest rates. In the Federal meeting of June the economists have decided to take further action in the late part of this year if the economy continues to slow down in near future.