Wholesale prices drop in May for second straight month as cost of energy and food both decline

Wholesale prices fall 0.3 percent in May

WASHINGTON — Wholesale prices fell for a second straight month in May, the first time that has happened in a year, reflecting big declines in the cost of energy and food.

The Labor Department says wholesale prices dropped 0.3 percent in May following a 0.1 percent decline in April. Core inflation, which excludes energy and food, posted a 0.2 percent increase. Core prices are up just 1.3 percent over the past 12 months.

The continued absence of inflationary pressures means that the Federal Reserve, which meets next week, can keep interest rates low to provide support for the economic recovery.