U.S. Government Reports CPI Declined 0.2% in May

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According to the U.S. Bureau of Labor Statistics, the Consumer Price Index for All Urban Consumers (CPI-U) declined 0.2 percent in May on a seasonally adjusted basis. Over the last 12 months, the index increased 2.0 percent before seasonal adjustment.

For the second month in a row a decline in the energy index accounted for the seasonally adjusted decrease in the all items index. The index for energy decreased 2.9 percent in May and more than offset a slight increase in the index for all items less food and energy. The food index was unchanged. Within the energy component, the gasoline index accounted for most of the decrease, although all the major energy indexes declined.

The index for all items less food and energy increased 0.1 percent in May, posting a monthly increase for only the second time this year. Contributing to the May rise were increases in a number of indexes including shelter, used cars and trucks, tobacco, apparel, and medical care. The index has increased 0.9 percent over the last 12 months.





Food

The food index was unchanged in May after increasing 0.2 percent each of the last two months. The food away from home index rose 0.1 percent while the food at home index was unchanged. Within the food at home group, declines in the indexes for fruits and vegetables and for nonalcoholic beverages offset increases in the other major grocery store food group indexes. The fruits and vegetables index fell 1.1 percent after declining 0.2 percent in April. The index for nonalcoholic beverages declined 0.8 percent. The index for meats, poultry, fish, and eggs rose 0.4 percent due to increases in the beef and pork indexes. The index for other food at home rose 0.3 percent, and the indexes for cereals and bakery products and for dairy and related products both increased 0.2 percent. For the past 12 months the food index has risen 0.7 percent, with the index for food at home up 0.3 percent and the index for food away from home up 1.1 percent.

Energy

The energy index declined 2.9 percent in May following a 1.4 percent decrease in April. The gasoline index declined 5.2 percent in May after falling 2.4 percent in April. (Before seasonal adjustment, gasoline prices rose 0.7 percent in May.) The index for household energy also declined in May, falling 0.6 percent. The fuel oil index declined 1.4 percent, the index for natural gas fell 1.0 percent, and the electricity index decreased 0.4 percent. Despite the May decline, the energy index has risen 14.7 percent over the last 12 months, with all components increasing during that time period including a 27.0 percent increase in the gasoline index.

All items less food and energy

The index for all items less food and energy rose 0.1 percent in May after being unchanged each of the previous two months. The shelter index increased for the first time since August 2009, rising 0.1 percent. The rise was mostly due to the index for lodging away from home, which increased 2.5 percent.

The indexes for both rent and owners' equivalent rent were unchanged in May. Several transportation indexes rose in May. The index for used cars and trucks increased 0.6 percent and has now risen 16.2 percent over the last 12 months. The index for new vehicles also increased, rising 0.1 percent. The index for airline fares rose 1.9 percent in May after increasing 2.2 percent in April. The tobacco index rose 1.3 percent in May, and the indexes for apparel and for medical care posted small increases of 0.2 percent and 0.1 percent, respectively. The index for household furnishings and operations was unchanged in May after declining in each of the previous four months. The index for recreation was also unchanged.

Over the last 12 months, the index for all items less food and energy has risen 0.9 percent, well below the 2.0 percent average annual increase over the past 10 years.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 2.0 percent over the last 12 months to an index level of 218.178 (1982-84=100). For the month, the index rose 0.1 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 2.6 percent over the last 12 months to an index level of 214.124 (1982-84=100). For the month, the index rose 0.1 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 2.0 percent over the last 12 months. For the month, the index increased 0.1 percent on a not seasonally adjusted basis.

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