US consumer prices drop in May
by Kay Murchie
Official data has today revealed that US consumer prices fell for the second consecutive month in May, by 0.2% on a monthly basis.
The fall was attributed to declines in fuel costs, after energy prices dropped sharply, according to the Labor Department.
The fall in May was the biggest monthly drop since December 2008.
Meanwhile, on an annual basis, prices have increased 2%, but core prices over 12 months (which exclude food and energy costs) are 0.9% higher than a year ago.
As a result, the annual rate of inflation now stands at 2% - in line with the US Federal Reserve’s target.
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Tags: consumer prices, fall, Federal Reserve, fuel costs, inflation, Labor Department, May, target, US