WASHINGTON-Overall U.S. consumer prices continued to slip lower in May after a sharp drop in April, while the cost of groceries continued to go up with people staying at home during the coronavirus pandemic.
China's National Bureau of Statistics is set to release May inflation data today.
The Labor Department said on Wednesday its consumer price index dipped 0.1% last month after plunging 0.8% in April, which was the largest decline since December 2008. Martin Rasmussen of Capital Economics noted the PPI change was driven by "an across-the-board decline in raw materials, manufactured goods and consumer goods price inflation".
"We believe falling CPI inflation and continued PPI deflation will provide Beijing with more space to implement policy stimulus to offset the impact of COVID-19 on the economy", Nomura analysts said in a research note.
Beef and lamb price inflation both moderated in May to 19.4 percent year on year and 10.8 percent, respectively, from 20.5 percent and 11.5 percent in April, although this was less significant than the drop in pork price inflation.
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However, the bill would need to be passed by Republicans, who control the US Senate and support President Donald Trump. The death of George Floyd at the hands of a white officer there sparked national pressure for change.
Citing the easing trend in CPI reading, Wen said the country is expected to reach the consumer inflation target of around 3.5 percent for the year 2020. Compared with a year ago, grocery prices are up 4 percent.
The decline widened from the 3.1-percent decrease in April, NBS data showed.
Prices of furnishings, household equipment, and routine household maintenance fell by 0.35%, housing, water, electricity, gas, and other fuels fell by 0.52%, communication dropped by 0.11% and miscellaneous goods and services declined by 1.34% during May 2020, compared to the same month in 2019.
In the first five months, the average PPI fell by 1.7 percent over the same period previous year.
Inflation also came out in China.