Data: Bureau of Labor Statistics; Chart: Axios Visuals

The U.S. consumer price index fell for the third straight month in May with a gauge of the index that removes volatile food and energy prices also negative for a third month in a row.

Why it matters: The reports fan worries that the coronavirus pandemic could spark deflation, further eroding U.S. growth.

  • It was the first time in the history of the series, which dates back to the 1950s, that the CPI has declined for three straight months.
  • April marked the lowest that the core CPI has ever fallen, touching -0.4%.
  • May's CPI also showed the smallest year-over-year increase since 2011, at 1.2%, and followed another historically small increase in April.

Watch this space: May's CPI was the latest government report to come with a warning. The Labor Department said it was hampered by the coronavirus pandemic, as in-store data collection has been suspended since March 16.

  • The department added that data collection last month was also impacted “by the temporary closing or limited operations of certain types of establishments,” leading to “an increase in the number of prices being considered temporarily unavailable and imputed.”
  • BLS said the same thing in its CPI report last month and noted a “misclassification error” in its highly followed jobs report released last

Go deeper: Why the Fed wants higher inflation

Go deeper

Dion Rabouin, author of Markets
Aug 24, 2020 - Economy & Business

PMI reports show V-shaped recovery in services and manufacturing

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Data: Investing.com; Chart: Axios Visuals

Early readings of IHS Markit's manufacturing and services purchasing managers' indexes rose by more than expected in August, showing continued improvement in expectations and output among U.S. firms.

By the numbers: The manufacturing index rose by 2.7 points month over month to 53.6, continuing the series' rise from 50.9 in July.

8 mins ago - Technology

Judge temporarily halts Trump's WeChat ban

Photo: Sheldon Cooper/SOPA Images/LightRocket via Getty Images

A federal judge early on Sunday temporarily blocked a Trump administration order banning the downloads of the Chinese-owned, global messaging app WeChat.

Why it matters: The temporary injunction means WeChat will remain on Apple and Google's app stores, despite a Commerce Department order to remove the app by Sunday evening.

Bill Clinton slams McConnell and Trump: "Their first value is power"

Former President Bill Clinton on Sunday called Senate Majority Leader Mitch McConnell's (R-Ky.) vow to fill Ruth Bader Ginsburg's vacant Supreme Court seat before the next presidential inauguration "superficially hypocritical."

The big picture: Clinton, who nominated Ginsburg to the court in 1993, declined to say whether he thinks Democrats should respond by adding more justices if they take back the Senate and the White House in November. Instead, he called on Republicans to "remember the example Abraham Lincoln set" by not confirming a justice in an election year.