Inflation in US Lower due to Energy Prices - 14.6.2012

The U.S. Bureau of Labor Statistics said in a report today that consumer price index dropped by 0.3% in May, following no change in April. The gasoline index fell by 6.8% in May, leading to a sharp decrease in the energy index of 4.3% and the decline in the all items index, the Bureau reported. Annual growth pace (CPI percent change from last year’s corresponding month) therefore decreased to 1.7%, the lowest since January 2011. The 12-month index has been declining steadily since its 3.9% peak in September 2011 also due to decreasing energy prices, which fell by 3.9% over the last 12 months. The core CPI inflation, which excludes food and energy, rose by 0.2% in May and remained at 2.3% from one year ago.