May consumer prices fall 0.1%, the third consecutive month

WASHINGTON —
U.S. shopper costs dropped in Would possibly maybe also for the third straight month because the coronavirus pandemic pushed the American economy into a recession.

The Labor Department said Wednesday that its shopper worth index fell 0.1% closing month after tumbling 0.8% in April and zero.4% in March. With the exception of meals and vitality costs, which soar round from month to month, so-called core inflation fell 0.1%, tumbling for the third consecutive month for the foremost time ever.

The pandemic and the quarantines intended to delight in it pushed the U.S. economy into a severe recession in February, ending a file-breaking expansion that began in June 2009, a panel of economists declared Monday. Weaker demand from customers pushes costs down.

“Total, the preliminary impression of the shutdowns attributable to the radical coronavirus is deflationary,” Contingent Macro Advisors wrote in a examine whisper. “Going forward, quiz elevated volatility in the approaching months — however the medium-time frame risks to inflation dwell firmly to the downside.”

At some stage in the final year, shopper costs are up 0.1% and core costs are up 1.2%.

Fuel costs dropped 3.5% in Would possibly maybe also, their fifth straight decrease, and are down 33.8% over the past year. Clothing costs fell 2.3%, third straight fall, and are down 7.9% over the past year.

Meals costs rose 0.7% closing month, and the worth of housing rose 0.2%

The Federal Reserve seeks to support inflation working at a 2% annual bolt. To dwell the economy from imploding completely, the Fed has slashed the momentary hobby price it controls to zero and poured trillions of greenbacks into the monetary arrangement. It has signalled that it stands willing to support out extra however is rarely any longer expected to choose further action at its latest meeting, which ends Wednesday.