US May CPI rises 3.3% year-over-year, below expectations

IconCryptoNewsTerminal Staff13 Jun, 2024

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US May CPI rises 3.3% year-over-year, below expectations

The US Department of Labor reported that the Consumer Price Index (CPI) rose by 3.3% year-over-year in May (up from 3.4% in April). This fell short of market expectations of 3.4%. The CPI measures the average change in prices over time for a basket of goods and services purchased by urban consumers. The May CPI increase was driven by rising prices for food, energy, and housing. The food index rose 0.4% in May, with increases in the prices of meat, poultry, fish, and eggs. The energy index rose 0.6%, with increases in the prices of gasoline and natural gas. The housing index rose 0.3%, with increases in the prices of rent and owners' equivalent rent. The core CPI, which excludes food and energy, rose 0.3% in May, after rising 0.9% in April. The core CPI is often considered a better measure of underlying inflation because it is less volatile than the headline CPI. The May CPI data suggests that inflation is continuing to rise, but at a slower pace than in recent months. This is consistent with the Federal Reserve's view that inflation is temporary and will eventually moderate.

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