US Inflation Rate Slows to 1%

Consumer prices in the United States went up 1 percent year-on-year in May of 2016, slowing slightly from a 1.1 percent rise in April. Figures came below market expectations of 1.1 percent as inflation for food and transportation services slowed while energy cost fell at a faster pace. Yet, core inflation accelerated slightly to 2.2 percent.

Year-on-year, food inflation slowed (0.7 percent compared to 0.9 percent in April); prices of transportation services increased at a slower pace (3.2 percent from 3.3 percent in April) and energy cost fell more (-10.1 percent, following an 8.9 percent decrease in April). In contrast, prices increased at a faster pace for services less energy (3.2 percent compared to 3 percent in April); shelter (3.4 percent compared to 3.2 percent in April) and medical care (3.5 percent compared to 3.1 percent in April). 

Annual core inflation which excludes food and energy went up to 2.2 percent from 2.1 percent in the previous month. 

Monthly inflation slowed to 0.2 percent from 0.4 percent in April. The food index declined 0.2 percent but the index for energy increased 1.2 percent, as the gasoline index rose 2.3 percent and the indexes for fuel oil and natural gas also advanced.  

The index for all items less food and energy increased 0.2 percent, the same as in April. The shelter index rose 0.4 percent, and the indexes for medical care, apparel, motor vehicle insurance, and education were among indexes that also increased. These advances more than offset declines in an array of indexes including used cars and trucks, communications, household furnishings and operations, airline fares, and new vehicles.

US Inflation Rate Slows to 1%

BLS | Joana Taborda |
6/16/2016 1:57:45 PM