WASHINGTON - The consumer price index fell 0.2% in May, the second straight monthly decline, and the core index increased 0.1%, both in line with economists' estimates, the Labor Department reported today.
Consumer prices dropped by the largest percentage since December 2008 as fuel prices fell. Core prices, which exclude food and energy costs, increased for the first time since February following two months of flat growth.
Economists estimated CPI would drop 0.2% and that core CPI would increase 0.1%, according to the median estimate from Thomson Reuters.
The energy index fell 2.9% in May following a 1.4% decrease in April. The gasoline index fell 5.2% for the month.
The drop in energy prices more than offset the slight increase in core prices. The shelter index increased for the first time since August, rising 0.1%. Lodging away from home rose 2.5% contributing to the shelter index gain as rent and owners' equivalent rent were unchanged in May.
For the year ending in May, total CPI increased 2.0% and the core price index grew 0.9%. The energy index was up 14.7% for the 12 months ending in May.
Real average hourly earnings for all employees rose 0.5% in May and average weekly earnings increased 0.8%.
