Consumer Prices Drop in Southern California.(Originated from The Orange County Register, Calif.)

Knight Ridder/Tribune Business News, July, 1996 by Pulliam, Liz

Jul. 17--Inflation? What inflation?

Consumer prices actually dropped in Southern California last month, pushed down by lower gasoline prices and big electricity rebates, according to data released Tuesday by the U.S. Department of Labor's Bureau of Labor Statistics.

Overall prices in June dropped 0.5 percent from May in Orange, Los Angeles, San Bernardino, Riverside and Ventura counties. Compared to June 1995, prices are running 1.2 percent higher.

Nationally, prices edged up 0.1 percent in June from a month earlier. Compared to June 1995, inflation is 2.8 percent.

"The Los Angeles area hasn't really pulled out of the recession as much as the rest of the country," said Todd Johnson, a Labor Department economist. "Merchants aren't able to raise...