May US CPI Report: Monthly Inflation Flat, Softer Than Expected

The Bureau of Labor Statistics reported that the Consumer Price Index rose 3.3% in May from year-ago levels—a tick down from April’s 3.4%. Core CPI, which excludes volatile food and energy costs, rose 3.4% in May over the last 12 months after rising 3.6% in April.

The CPI held steady from last month after rising 0.3% in April. Core CPI increased 0.2% after rising 0.3% in April. The report showed a softer rate pace for inflation in May than economists expected.

May CPI Report Key Stats

• CPI held steady for the month after rising 0.3% in April, versus the FactSet consensus forecast for a 0.1% rise.
• Core CPI increased by 0.2% after growing by 0.3% in April, versus the forecast for a 0.3% rise.
• CPI rose 3.3% year over year after growing by 3.4% the prior month, versus the forecast for a 3.4% increase.
• Core CPI increased 3.4% from year-ago levels after growing 3.6% in April, versus the forecast for a 3.5% increase.

Food prices rose 0.1% in May after holding steady in April. Food-at-home prices were unchanged over the month, while food-away-from-home (restaurant) prices increased 0.4%.

Energy prices were mixed overall after growing 1.1% the prior month. Utility (piped) gas service prices declined 0.8%, fuel oil prices declined 0.4%, gasoline prices decreased 3.6%, and electricity prices were unchanged.

Shelter prices increased by 0.4% after increasing the same amount in April.