Inflation Eased to 3.3% in May

Washington, DC, June 12, 2024-The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in May on a seasonally adjusted basis, after rising 0.3% in April, the U.S. Bureau of Labor Statistics reported. 

Over the last 12 months, the all items index increased 3.3% before seasonal adjustment.

More than offsetting a decline in gasoline, the index for shelter rose in May, up 0.4% for the fourth consecutive month. The index for food increased 0.1% in May. The food away from home index rose 0.4% over the month, while the food at home index was unchanged. The energy index fell 2.0% over the month, led by a 3.6% decrease in the gasoline index. 

The index for all items less food and energy rose 0.2% in May, after rising 0.3% the preceding month. Indexes which increased in May include shelter, medical care, used cars and trucks, and education. The indexes for airline fares, new vehicles, communication, recreation, and apparel were among those that decreased over the month.

The all-items index rose 3.3% for the 12 months ending May, a smaller increase than the 3.4% increase for the 12 months ending April. The all items less food and energy index rose 3.4% over the last 12 months. The energy index increased 3.7% for the 12 months ending May. The food index increased 2.1% over the last year.

“U.S. inflation slowed in May, extending an easing in price increases after a hot start to the year,” reports the Wall Street Journal.

“The consumer-price index, a measure of goods and service costs across the economy, rose 3.3% annually last month, the Labor Department said Wednesday. Core prices that exclude volatile food and energy items climbed 3.4% from a year earlier.

“Stock futures jumped after the report, while Treasury yields fell.

“Wednesday’s inflation report, which came hours before a Federal Reserve meeting is set to conclude, was better than many investors’ expectations.”