Consumer prices drop again

The cost of some consumer goods such as groceries have spiked for households, but inflation more broadly fell again in May owing to a slump in demand triggered by the coronavirus pandemic.

The consumer price index slipped 0.1% last month after a much larger decline in April, the government said Wednesday. It was the third straight decline.
 
Another measure of inflation that strips out volatile gas and food prices, known as core CPI, also declined for the third month in a row — the first time that’s ever happened.

What happened: The cost of gasoline dropped 3.5% in May, doing much of the work in reducing overall consumer prices. Prices also fell for clothing, car insurance, airfare, hotel rooms and used vehicles.

The cost of groceries rose sharply again, however, reflecting a scarcity of some goods in high demand as well as shortages caused by viral outbreaks at meat-packing plants and other food-producing companies. Beef prices in particular have surged.

The so-called food-at-home index has soared 4.8% in the past 12 months — the highest rate in more than eight years.

The cost of shelter — rents and home prices — have also continued to edge higher. Rents rose 0.2% in May. Prices also increased for alcohol, medical care and new cars and trucks.