Consumer Prices Fall For Third Straight Month
June 11, 2020
Americans were paying less for goods and services in May. The consumer price index (CPI), which tracks the cost of everything from groceries to cars, fell 0.1% last month, following declines of 0.8% in April and 0.4% in March.
The so-called “core” CPI, which strips out volatile categories like gasoline, also fell 0.1%, marking the first time that the core index has fallen for three consecutive months.
In the 12 months through May, the CPI rose just 0.1%, the lowest yearly increase in nearly five years.
The slump in deflationary pressure comes from the collapse in demand following the coronavirus outbreak. Clothing and gasoline have been hardest hit in recent months, as stores and malls closed. Gasoline and transportation costs also fell, as more Americans continue to work from home and cancel vacation plans. Grocery prices climbed again this month after posting record increases in April as more Americans are preparing meals at home.