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Consumer Prices in U.S. Fell in May by Most in Three Years

The cost of living in the U.S. fell in May by the most in more than three years as fuel prices retreated, buttressing Federal Reserve projections that cheaper commodities will help reduce inflation.

The consumer-price index declined 0.3 percent, more than forecast and the biggest drop since December 2008, after no change the prior month, the Labor Department reported today in Washington. Economists projected a 0.2 percent decrease, according to the median estimate in a Bloomberg News survey. The so-called core measure, which excludes more volatile food and energy costs, increased 0.2 percent for a third month.