US Inflation Eases as Consumer Prices Fall Sharply in May 2012

US inflation eased over the past year as consumers prices fell in May by the most in more than three years, the US government reported Thursday.

Thanks to sharply lower gasoline costs and leveled food prices, American consumers were able to better handle increases in items like clothing, transportation, shelter and medical care.

Consumer prices declined 0.3 percent in May after being flat in April, the US Labor Department reported. It was the first downturn since October and the biggest drop since December 2008. Continue reading