Numbers unveiled Wednesday show consumer prices declined south of the border in May, reflecting a big drop in energy prices and smaller declines in a number of other areas. It was the second monthly decline in the past three months and underscored that inflation remains a non-factor for U.S. economy, on a day when a rate hike by the U.S. Federal Reserve is regarded as a lead-pipe cinch.
The U.S. Labor Department said Wednesday that the consumer price index edged down 0.1% last month following a small 0.2% increase in April. Prices fell 0.3% in March. In addition to a drop in energy costs last month, the price of clothing, airline fares and medical care also declined. Core inflation, which excludes energy and food, rose a slight 0.1% in May.
The Fed was expected to boost a key interest rate Wednesday, officials viewing the recent slowdown in inflation as temporary.
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