U.S. consumer inflation continued to soar during May as spiked oil prices further skewed top-line figures, while core inflation posted a modest acceleration.
Data released June 10 by the Labor Department showed that its Consumer Price Index overall figure rose 0.5% during May month-over-month and jumped 4.2% year-over-year, with the latter charting as the largest annual increase since April 2023. Those figures followed April’s 0.6% monthly increase and 3.8% annual and were in line with market forecasts.
May’s monthly figures were predominantly driven by a 3.9% jump in the subindex for energy after a 3.8% advance in April and 10.9% spike in March following the start of the Iran war on Feb. 28. That index accounted for over 60% of the monthly all items increase. The May index for shelter rose 0.3% MoM; the food index increased 0.2%; food at home rose 0.1% and food away from home increased 0.3%.
Meanwhile, core inflation, which removes volatile food and energy categories, increased a modest 0.2% MoM and 2.9% YoY — with the monthly figure below a 0.3% market estimate and less than April’s 0.4% increase.
May’s Producer Price Index figures are set to be reported July 14.
U.S. Wholesale Sales Post More Strong Growth in April, Inventories Slow – June 9
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