Consumer prices did not rise in May as inflation slightly loosened its stubborn grip on the U.S. economy, the Labor Department reported Wednesday.
The Consumer Price Index (CPI), a broad measure of inflation that measures the cost of a basket of goods and services across the U.S. economy, was flat this month despite rising 3.3% from a year earlier, according to the Bureau of Labor Statistics.
Economists surveyed by Dow Jones had been expecting monthly growth of 0.1% and annual growth of 3.4%.
Excluding volatile food and energy prices, core CPI rose 0.2% month-on-month and 3.4% year-on-year, compared with expectations of 0.3% and 3.5% respectively.
Stock futures were higher and Treasury yields fell after the report was released.
Although top-line inflation data for all items and core indicators were lower, housing inflation rose 0.4% for the month and was 5.4% higher than the same period last year. Housing-related data has been a sticking point in the Fed’s fight against inflation and accounts for a large portion of the consumer price index’s weight.
However, the energy index fell by 2%, the food index rose by only 0.1%, and price increases were restrained. Within the energy sector, natural gas prices fell 3.6%. Another troubling component of inflation, motor vehicle insurance, fell 0.1% on the month but was still up more than 20% for the year.
This is breaking news. Please check for updates.
About The Author
