The document summarizes US inflation data from May 2012. It discusses that the headline CPI fell 0.3% in May, representing the sharpest annual decrease since 2008. Core inflation, which excludes food and energy prices, slowed sharply due to a over 4% monthly drop in energy prices and 6% decline in gasoline prices. The trimmed mean CPI, which removes the most and least increased prices, also fell sharply in May. All of the inflation measures discussed were below the Fed's 2% target rate for prudent monetary policy.