Consumer Price Index Posts Third Straight Monthly Decline in May

The U.S. Bureau of Labor Statistics (BLS) is reporting that the Consumer Price Index (CPI) declined -0.1% in May on a seasonally adjusted basis after falling -0.8% in April. Year-over-year, the all items index increased by 0.1% before seasonal adjustment, following a 0.3% increase in April. According to the BLS, excluding the volatile food and energy components, it is the first time that the “core” CPI has declined for three consecutive months in the history of the data series which dates back to 1957. In May, the indexes for used cars and trucks, apparel, airline fares, and motor vehicle insurance all decrease. However, offsetting that were increases in the indexes for shelter, recreation, medical care, household furnishings and operations and new vehicles. On a not seasonally adjusted basis, over the past 12 months, the CPI rose by 0.1% in May, following a 0.3% increase in April. Meanwhile, the “core” CPI increased by 1.2% over the past twelve months, slower than a 1.4% increase in April. The food index rose by 4.0%, and the energy index declined by -18.9% over the past twelve months.