Report: Consumer prices fall in May by most in 3 years

Washington, D.C. -- A report released by the Labor Department on Thursday showed that the cost of living in the U.S. dropped in May by the most in three years. The consumer-price index declined 0.3%, more than forecast and the biggest drop since December 2008, after no change the prior month. Economists projected a 0.2% decrease, according to the median estimate in a Bloomberg News survey. The core measure, which excludes food and energy costs, increased 0.2% for a third month. “The drop in the headline is encouraging for the Fed because it shows gasoline prices are less of