US Consumer Price Index Rises 2.4% Year-Over-Year in May

On Wednesday, the US Bureau of Labor Statistics (BLS) reported that the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1% in May on a seasonally adjusted basis, following a 0.2% increase in April and a 0.1% decline in March. On an unadjusted basis, the all-items index increased 2.4% over the past 12 months.

Shelter was the largest contributor to the monthly gain, rising 0.3% in May. The food index also increased 0.3%, with both food at home and food away from home rising by the same margin. In contrast, the energy index declined 1.0% as gasoline prices fell during the month.

Excluding food and energy, the CPI rose 0.1% in May, down from a 0.2% increase in April. Categories with monthly gains included medical care, motor vehicle insurance, household furnishings and operations, personal care, and education. Declines were reported in airline fares, used cars and trucks, new vehicles, and apparel.

Year-over-year, the all-items index was up 2.4% in May, slightly higher than the 2.3% increase in April. Less food and energy, the CPI rose 2.8% over the past 12 months. The energy index fell 3.5%, while the food index rose 2.9% over the same period.