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The overall CPI fell at an annualized rate of 1.9 percent in May, though that was largely due to declining energy prices (down 30.2 percent). Food prices were flat. The “core” CPI rose 1.5 percent during the month, which is its largest monthly gain since last October. On a year-over-year basis, the core CPI remained at 0.9 percent, which is still its lowest growth rate since 1961.The median and 16 percent trimmed-mean CPI were both virtually unchanged in May, rising at annualized rates of just 0.5 percent and 0.4 percent, respectively. On a nonannualized basis, the median CPI was unchanged for the fifth straight month and now eight out of the last 11 months. The 12-month growth rate in the median CPI remained at a paltry 0.5 percent, while the trim stayed at 0.9 percent. Underpinning the softness of the trimmed-mean measures relative to the core, was a continued shift in the mass of the price-change distribution toward the lower end. Perhaps the most striking feature of the distribution this month was that just 18 percent of the overall index (by expenditure weight) rose at rates exceeding 3.0 percent, its lowest share on record (back to 1967). As has been the case over the previous six months, a majority of the distribution (63 percent in May) either rose less than 1.0 percent or exhibited outright price decreases.