US consumer prices fall for a 3rd straight month in May - Business Insider

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US consumer prices fall for a 3rd straight month on continued hit to demand from the coronavirus pandemic

The core CPI, which excludes the volatile costs of food and fuel, fell 0.1% in May after a 0.4% decline in April. Consumer inflation rose 1.2% on the year in May, the smallest year-over-year increase since 2011, after gaining 1.4% in April.

US CPI will continue to be closely watched as slumping prices could lead to deflation as the US economy reopens from the coronavirus pandemic. Still, as consumers have been stuck at home and thus shifted spending habits away from things such as air travel and clothing, it's potentially made the measure less representative of prices.

 

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Groceries are the only category increasing as CPI falls three consecutive months for the first time via csreinicke economy

Deflation

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