In May, the cost of food rose 0.2% compared to April, showing persistent inflation in grocery store items
Americans can breathe easy as the latest Consumer Price Index (CPI) report brings some relief. The latest data reveal price increases at gas pumps and groceries have slowed down, indicating cooling inflation.
The May CPI data, released yesterday by the Bureau of Labor Statistics, showed a 4% rise in consumer prices from a year earlier. But it’s down from 4.9% in April and way below the 9.1% peak of inflation in June 2022.
If the June inflation report confirms further cooling, the Fed might decide to pause rate increases, experts predict.
Though certain sectors of the economy continue to see rising prices, the report gave hope.
Highlights of the consumer index
Food: In May, the cost of food rose 0.2% compared to April, showing persistent inflation in grocery store items. The prices of fruits and vegetables also rose 1.3%.
- Meat, poultry, fish and eggs decreased 1.2%.
- Dairy and related product prices declined 1.1%.
- Restaurants saw a 0.5% increase, with full-service meals going up 0.4%.
Energy: Broader energy prices declined around 3.6%.
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Compared to last year, gas prices plummeted 20%.
Rent: A major contributor to inflation, it has shown a slower rate increase.
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Shelter costs rose 8% from a year ago.