Washington, DC, June 15—-The consumer price index fell 0.1 percent in May after rising 0.5 percent in April, according to the Labor Department. The core index, which excludes food and energy, rose 0.1 percent in May.
Economists had forecast no change in the consumer price index and an increase of 0.2 percent in the core index.
For the last 12 months, consumer prices were up 2.8 percent, compared with a 3.5 percent year-over-year gain in April. Core prices were 2.2 percent higher than a year ago, matching April's 12-month increase.
So far this year, consumer prices are rising at a 3.7 percent annual rate compared with a 5 percent increase at the same time last year. Core prices are rising at a 2.4 percent annual pace, down from a 2.5 percent rate in the first five months of 2004.
Energy prices fell 2 percent in May after rising 4.5 percent a month earlier. Gasoline prices dropped 4.4 percent and natural gas costs fell 0.2 percent.
Food prices, which account for about a fifth of the index, rose 0.1 percent in May after rising 0.7 percent the month before. Beef, dairy and fruit prices were higher in May, while the costs of pork and chicken declined.
The cost of all goods including cars, apparel and food fell 0.4 percent last month after rising 0.9 percent in April. Goods prices have risen 2.4 percent since May 2004. New car prices rose 0.1 percent last month after decreasing 0.1 percent in April and the cost of clothing was unchanged percent after declining 0.6 percent the month before.
