NEW YORK (CNNMoney.com) -- A key index of consumer prices fell in May, but it was up 2% over the past 12 months, the government said Thursday.
The Consumer Price Index, the Labor Department's key measure of inflation, fell by 0.2% in May on a monthly basis. Economists surveyed by Briefing.com expected a 0.1% drop.
The government report attributed most of the month-to-month decline to the energy index, which fell by 2.9% in May. The gasoline index fell by 5.2% in May, and was down 27% over the year.
"Up to this point, the U.S. economy has been the beneficiary of an 'inflation-less' recovery," said Jim Baird, partner and chief investment strategist for Plante Moran Financial Advisors, in a research note.
"While [some] point to the risk of inflation down the road," he added, "there is still sufficient slack in the economy to keep price levels from moving higher."
Core CPI and inflation: The closely watched core CPI, which excludes volatile food and energy prices, ticked up by 0.1% in May after being unchanged in April. That matched economists' expectations.
It was only the second monthly increase in core CPI so far this year. The rate is down by 0.9% over the previous 12 months.
"The core inflation rate remains uncomfortably low," Baird said. "The economy may be expanding, but at a pace that isn't inspiring."
The core rate is a gauge of inflation. Experts say concerns are sparked only when core CPI rises consistently by 0.2% or more each month.
Telsa CEO Elon Musk chided his salespeople for offering discounts to customers, violating the company's strict 'no negotiation, no discount' policy. More
China is no longer offering Venezuela new loans, according to experts. It spells bad news for Venezuela, which relied heavily on Chinese finance. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
U.S. Labor Secretary Tom Perez writes about why the Labor Department introduced a new rule requiring federal contractors to provide paid sick leave to workers. More