The latest data from the Labor Department indicates that in May, the consumer price index (CPI) in the U.S. remained relatively steady. This development suggests a slight easing of inflation’s persistent impact on the economy.
According to the Bureau of Labor Statistics, the CPI, which serves as a general measure of inflation by tracking the costs of a variety of goods and services nationwide, did not rise over the month, showing the figure at 0.1%. However, it did show a 3.3% increase compared to the previous year.
Economists, surveyed by Dow Jones, had anticipated a 0.1% rise in the monthly CPI and an annual increase of 3.4%. In contrast, the April figures revealed a 0.3% monthly uptick and a 3.3% annual inflation rate.
The core CPI, which excludes the volatile categories of food and energy prices, rose by 0.2% on a monthly basis and by 3.4% annually, slightly lower than the predicted 0.3% and 3.5% respectively.
While overall inflation rates were lower for both the general and core measurements, there was a 0.4% rise in shelter inflation on a monthly basis and a 5.4% surge from the previous year. Housing costs have been a major concern in the Federal Reserve’s efforts to manage inflation and carry significant weight in the CPI calculations.
Price surges were offset by a 2% decline in energy prices and a marginal 0.1% increase in food costs. Gas prices notably dropped by 3.6% within the energy category. Motor vehicle insurance, another problematic component of inflation, experienced a 0.1% monthly reduction but still saw a more than 20% increase compared to the previous year.
