U.S. consumer prices fell in May compared to a year-ago, a sign the inflation remains subdued.

U.S. consumer prices fell 1.3% compared to one year ago, the largest 12-month decline since April 1950, the U.S. Labor Department said Wednesday.

That’s below the 2% annual rate of inflation that most U.S. Federal Reserve officials think is consistent with their dual mandate of price stability and maximum employment.

A slight rise in the consumer price index from the prior month and an increase in core prices that exclude food and energy support the growing sentiment at the Fed that deflation risks have waned.

The CPI rose 0.1% in May from April, below economist expectations for a 0.3% increase.

The core CPI, which excludes food and energy prices, also rose 0.1%, in line with expectations.

Canada’s inflation report for April will be released Thursday.

IE