|Consumer prices in the United States declined a seasonally adjusted 0.2 percent in May, the second consecutive monthly drop, reported the Labor Department on Thursday.
The May Consumer Price Index (CPI), which tracks inflation at the retail level, marked the biggest decline since consumer prices plunged 0.7 percent in December 2008.
Core CPI, which exclude volatile energy and food costs, edged up 0.1 percent last month after being flat in April.
The 0.2 percent drop in overall prices in May reflected a 2.9 percent decline in energy. Gasoline prices posted the biggest decline -- down 5.2 percent in May, the sharpest decline since December 2008.
The index for food costs, which accounted for over 60 percent of the all items increase, kept unchanged in May.
As consumer prices continue subdued, economists do not expect inflation to be a threat for a prolonged period. More economists are concerning of deflation.
They believe that the Federal Reserve will have more time to keep interest rates at record-low levels to boost the economy.