The U. S. Department of Labor reported on Thursday that consumer prices dropped for the second consecutive month in May largely due to lower energy costs.

Prices in May dropped 0.2 percent from April. A month ago, consumer prices declined 0.1 percent.

It has been also reported that on an annual basis, prices have risen 2 percent, but core prices over 12 months, prices that exclude food and energy expenses, are up 0.9 percent from a year ago.

For May, energy prices fell 2.9 percent, as oil prices dropped off the year's high above $86 per barrel to $71 per barrel in the middle of the month.

The report further noted that the decline in energy costs was triggered by concern that Greece and other debt-burdened countries in Europe could default on their government debt.

Overall, the two-month drop is mild, averaging 1.5 percent, but May's decline is the sharpest since December 2008, when prices plummeted 0.7 percent, sparking fears of deflation. (With Inputs from Agencies)