ARLINGTON, Va.—On a seasonally-adjusted basis, overall consumer prices fell 0.1% in May, the third monthly decline in a row.
The Bureau of Labor Statistics reported the overall consumer price index (CPI) grew 0.2% over the 12-month period.
"The energy index has now fallen for five consecutive months, driven by a reduced demand for transport fuels," said NAFCU Chief Economist and Vice President of Research Curt Long.
Energy prices plummeted 1.8% during the month, following a 10.1% decline in April. From a year ago, energy prices were down 18.3%. Food growth was up 0.7% in May and rose 4% on a year-over-year basis.
"Disinflationary pressures from collapsing demand are swamping any supply-side effects on prices," Long added. "This may abate somewhat as the economy reopens, but not enough to force the Fed into any difficult decisions. Rates will remain at zero for the foreseeable future."
Core prices (excluding food and energy costs) declined 0.1% in May. Year-over-year core CPI growth was 1.2%.