MNI DATA ANALYSIS: US May CPI +0.2%, Both Overall and Core>

--Overall CPI Rises To +2.8% Y/Y, Core Ticks Up To +2.2% Y/Y

By Kevin Kastner and Holly Stokes 

     WASHINGTON (MNI) - The May CPI data suggested that consumer 

inflation remains steady, with the gains in the headline and core 

measures that were as expected and the year/year rates moving higher, 

data released Tuesday morning showed. 

--CPI ON EXPECTATIONS

     Overall CPI posted a 0.2% increase, in line with both analyst and 

market expectations, while the core CPI gain at 0.2% continues the trend 

of accurate estimates. As a result, the data should generate little 

reaction, though they do indicate that consumer price inflation remains 

on an upward trend. 

     Unrounded, the month/month rise for overall CPI was +0.209%, while 

the unrounded increase for core CPI was +0.171%, on the low side of 

0.2%. 

--YEAR/YEAR PRICES TICK UP

     Overall, the data point to upward progress in consumer inflation, 

as the year/year rates strengthened further. 

     The year/year rate for overall CPI rose to 2.8% from 2.5% in April, 

hitting the highest change since February 2012, while the year/year rate 

for core CPI rose to 2.2% from 2.1%, the highest gain since February 

2017. 

--HOUSING PRICE UP, NEW VEHICLES REBOUND

     The large owners' equivalent rents category rose 0.2%, while 

lodging away from home prices jumped 2.9%, medical care prices rose 0.2% 

and new vehicle prices rebounded by 0.3% after a 0.5% decline in April. 

Providing some offset, apparel prices were flat and used vehicle prices 

fell 0.9%, continuing the string of declines. 

     Energy prices rose by 0.9% for May after a 1.4% increase in April, 

with gasoline prices up 1.7%, but electricity prices up only 0.1% and 

gas utilities prices down 0.6%. Energy prices were up 3.6% unadjusted, 

so seasonal adjustment did subtract some of the strength. CPI excluding 

only energy was also up 0.2%. 

     Food prices were flat in May, with food at home down 0.2% and food 

away from home prices up 0.3% in the month. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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