The index for soft drinks also turned down in July. Prices for dairy products, roasted coffee, and processed turkeys fell more rapidly in July than they did in June, while price increases for processed fruits and vegetables slowed during the same period.

On the other hand, the index for fresh and dry vegetables declined 2.8%, after plummeting 24.0% in June.

The index for food at home, which rose 0.2% in March, dropped 0.1% in April marking the first decline since January. This contributed to a smaller than anticipated rise in the overall Consumer Price Index, which advanced just 0.3% during April and will likely temper any quick action to raise interest rates by the Federal Reserve.

The index for dairy products rose 1.2% compared to last month, reflecting sharp increases in prices for milk and for cheese. The index for beef and veal, which declined in each of the first three months of 2004 after advancing over 20% in all of 2003, turned back up in April, advancing 0.7%. Declines were reported in the indexes for both fresh and processed fruits and vegetables and for carbonated drinks, which dropped 0.9% for the second consecutive month. Egg prices dropped a significant 6% during the month, but were still well above year ago levels