Inflation Slows Slightly In May, With Consumer Prices Up 3.3 % From A Year Ago
Wednesday, June 12, 2024, 9:15 A.M. ET. By Jennifer Hodges: Englebrook Independent News,
WASHINGTON, DC.- On Wednesday, the U.S. Department of Labor reported that the consumer price index cooled in May though it still increased by 3.3 percent from a year ago. Both numbers were 0.1 percent below market expectations.
Today’s report might be a welcoming sign for the Federal Reserve, but prices still remain high for millions of Americans across the U.S.
The Labor Department on Wednesday said, excluding the so-called core prices, which exclude the volatile food, energy costs, and rent increased by 0.2% on the month and 3.4% from a year ago, compared to the respective estimates of 0.3% and 3.5%.
Following the report, stock market futures jumped higher while Treasury yields dropped.
As first reported by CNBC, though the top-line inflation numbers were lower for both all-items and core rate measures, shelter inflation increased by 0.4% on the month and was up 5.4% from a year ago. Housing numbers have been a sticking point in the Federal Reserve’s inflation battle and make up a heavy share of the Consumer Price Index weighting.
Prices were held in check, though, by a 2% drop in the energy index and just a 0.1% increase in food. Within the energy component, gas prices tumbled tumbled 3.6%. Another inflation component was motor vehicle insurance which saw a 0.1% monthly decline but still up more than 20% on an annual basis.
Wednesday’s report comes at an important point in time for the economy as the Federal Reserve weighs its next moves on monetary policy, which will be based heavily on where inflation is heading.
