Falling Grocery Prices Helped Keep Inflation in Check Last Month in Mexico

Consumer prices in July were up 3.4% from a year ago, according to a report Wednesday from the Labor Department. That's a smaller annual increase than in May or June. Prices rose just 0.1% between June and July, after falling 0.4% between May and June.

Rising rents and airfares last month were partially offset by falling prices for gasoline and groceries. Lettuce prices plunged more than 16% in July after an outbreak of food-borne illness prompted a recall of iceberg lettuce from Mexico. Retailers offered deep discounts on other lettuce varieties in hopes of wooing anxious shoppers.