Consumer Prices Drop 0.2% in May, Annual Inflation Up 2.0%

The cost of living in the U.S. declined in May for the second month in a row as energy prices retreated, the government reported Thursday.

The Consumer Price Index, the most closely watched indicator for inflation, fell 0.2% in May after edging 0.1 lower in April, the Labor Department said. Flat food costs and lower energy bills led by plunging gasoline prices aided in trimming U.S. consumer prices.

"The weak recovery has its upside, declining energy costs and that is helping take pressure off the cash-strapped consumer," Joel Naroff, president of Naroff Economic Advisors, was quoted by the AP.

Core consumer prices, which exclude volatile food and energy prices, rose 0.1% in May, marking only the second monthly increase this year. The core inflation rate was unchanged in April and March, rose 0.1% in February, and declined 0.1% in January. Continue reading Consumer Prices Drop 0.2% in May, Annual Inflation Up 2.0%