CPI Rose 0.6% in May on Higher Prices for New and Used Vehicles, Clothing, and Airfares; Now Up 5% Year over Year, MarketWatch666, Commenter RJS The consumer price index rose 0.6% in May, as higher prices for new and used vehicles, clothing, airfares, car and truck rentals, and utilities were only slightly offset by lower prices for gasoline and for health insurance…the Consumer Price Index Summary from the Bureau of Labor Statistics indicated that seasonally adjusted prices averaged 0.6% higher in May, after rising by 0.8% in April. 0.6% in March, 0.4% in February, 0.3% in January, 0.2% in December, 0.2% in November, 0.1% in October, 0.2% in September, 0.4% in August, by 0.5% in July and by 0.5% in June, but after falling by 0.1% last May….the
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CPI Rose 0.6% in May on Higher Prices for New and Used Vehicles, Clothing, and Airfares; Now Up 5% Year over Year, MarketWatch666, Commenter RJS
The consumer price index rose 0.6% in May, as higher prices for new and used vehicles, clothing, airfares, car and truck rentals, and utilities were only slightly offset by lower prices for gasoline and for health insurance…the Consumer Price Index Summary from the Bureau of Labor Statistics indicated that seasonally adjusted prices averaged 0.6% higher in May, after rising by 0.8% in April. 0.6% in March, 0.4% in February, 0.3% in January, 0.2% in December, 0.2% in November, 0.1% in October, 0.2% in September, 0.4% in August, by 0.5% in July and by 0.5% in June, but after falling by 0.1% last May….the unadjusted CPI-U index, which was set with prices of the 1982 to 1984 period equal to 100, rose from 267.054 in April to 269.195 in May, which left it statistically 4.9927% higher than the 256.394 index reading of May of last year, which is reported as a 5.0% year over year increase, up from the 4.2% year over year increase reported a month ago, and the largest annual increase since 2008…with lower prices for gasoline holding back the overall index increase, seasonally adjusted core prices, which exclude food and energy, were up by 0.7% for the month, as the unadjusted core price index rose from 273.968 to 275.893, which left the core index 3.7976% ahead of its year ago reading of 265.799, which is reported as a 3.8% year over year increase, up from the 3.0% year over year core price increase that was reported for March, and the largest year over year core price index increase since May 1992 . . .
The volatile seasonally adjusted energy price index was unchanged in May, after falling by 0.1% in April, rising by 5.0% in March, by 3.9% in February, by 3.5% in January, by 2.6% in December, 0.7% in November, 0.6% in October, 1.4% in September, 0.9% in August, 2.1% in July, and by 4.4% in June, but after falling by 2.3% last May, and hence is still 28.5% higher than in May a year ago….the price index for energy commodities was 0.6% lower in May, while the index for energy services was 0.7% higher, after rising 1.5% in April….the energy commodity index was down 0.6% on a 0.7% decrease in the price of gasoline, which was slightly offset by a 2.1% increase in the price index for fuel oil, while prices for other energy commodities, including propane, kerosene, and firewood, were on average 0.6% higher…within energy services, the price index for utility gas service rose 1.7% after rising 2.4% in April and is now 13.5% higher than it was a year ago, while the electricity price index rose 0.3% in May after rising 1.2% in April….despite two straight decreases, energy commodities are still averaging 54.5% higher than their year ago levels, with gasoline price averaging 56.2% higher than they were a year ago, while the energy services price index is now up 6.2% from last May, as electricity prices are also 4.2% higher than a year ago…
The seasonally adjusted food price index rose 0.4% in May, after rising by 0.4% in April, by 0.1% in March, 0.2% in February, 0.1% in January and by 0.3% in December, after being unchanged in November, rising 0.2% in October, rising 0.1% in August and in September, after falling 0.3% last July, rising 0.5% last June, by 0.7% last May and by 1.4% last April, as the price index for food purchased for use at home was 0.6% higher in May, after rising 0.4% in April, while the index for food bought to eat away from home was 0.6% higher, as average prices at fast food outlets rose 0.5% and prices at full service restaurants rose 0.6%, while food prices at employee sites and schools averaged 1.2% higher…
In the food at home categories, the price index for cereals and bakery products was 0.4% higher, as average bread prices rose 0.9%, the price index for fresh biscuits, rolls, muffins rose 0.7%, the price index for breakfast cereals rose 1.3% and the price index for flour and prepared flour mixes also rose 1.3%….at the same time, the price index for the meats, poultry, fish, and eggs food group was also 1.3% higher, as the price index for beef and veal rose 2.3%, the price index for bacon and related products rose 1.8%, the price index for poultry rose 1.9%, and the price index for fish and seafood rose 2.2%….moreover, the seasonally adjusted price index for dairy products was 0.4% higher, as milk prices rose 2.2% even as the price index for ice cream was 0.6% lower…meanwhile, the fruits and vegetables price index was unchanged as the price index for fresh vegetables rose 0.5% while the price index for processed fruits and vegetables fell 0.2% and the price index for dried beans, peas, and lentils fell 0.6%….on the other hand, the beverages price index was 0.5% lower, as the price index for carbonated drinks fell 1.3% and the price index for noncarbonated juices and drinks fell 0.6%….lastly, the price index for the ‘other foods at home’ category was unchanged, as the price index for sugar and sweets rose 0.5%, the price index for fats and oils rose 0.8% and the price index for prepared salads rose 1.9%, while the price index for soups fell 0.7% and the price index for snack foods was 1.7% lower…the itemized list for price changes of over 100 separate food items is included at the beginning of Table 2 for this release, which also gives us a line item breakdown for prices of more than 200 CPI items overall…since last May, the only food line item showing a price change greater than 10% over the past year is bacon, which was 13.0% higher, while the price index for food at employee sites and schools is 34.4% lower on what was reported as a 43.5% year over year drop in the price index for food at elementary and secondary schools in March, but has not been itemized since…
Among the seasonally adjusted core components of the CPI, which rose 0.7% in May after rising 0.9% in April, 0.3% in March, 0.1% in February, being unchanged in January and December, after rising by 0.2% in November, by 0.1% in October, by 0.2% in September, by 0.3% in August, by 0.5% in July and by 0.2% in June, after falling by 0.1% in May of last year, the composite price index of all goods less food and energy goods was 1.8% higher in May, while the more heavily weighted composite for all services less energy services was 0.4% higher….
Among the goods components, which will be used by the Bureau of Economic Analysis to adjust March retail sales for inflation in national accounts data, the price index for household furnishings and supplies was was 0.9% higher, as the price index for living room, kitchen, and dining room furniture rose 2.1%, the price index for “other” furniture rose 2.7%, the price indices for floor coverings and window coverings also both rose 2.7%, and the price index for outdoor equipment and supplies rose 2.3%….at the same time, the apparel price index was 1.2% higher on a 1.5% increase in the price index for men’s suits, sport coats, and outerwear, a 3.6% increase in the price index for women’s outerwear, a 5.2% increase in the price index for girl’s apparel, and a 3.5% increase in the price index for boys’ and girls’ footwear….at the same time, the price index for transportation commodities other than fuel rose another 4.0% after jumping 4.3% in April, as prices for new cars and new trucks were both 1.6% higher, prices for used cars and trucks rose by a 7.3%, the price index for motor oil, coolant, and fluids rose 1.4%, and the price index for tires was 1.0% higher… however, the price index for medical care commodities was unchanged, as prescription drug prices fell 0.3% while nonprescription drug prices rose 0.7% and the price index for medical equipment and supplies rose 1.2%…meanwhile, the recreational commodities index was 0.4% higher on an average 0.9% increase in TV prices, a 1.5% increase in the price index for sporting goods, and a 1.9% increase in the price index for photographic equipment and supplies…moreover, the education and communication commodities index was also 0.4% higher on a 0.7% increase in the price index for educational books and supplies, a 1.0% increase in the prices index for computer software and accessories, and a 0.6% increase in the price index for computers, peripherals, and smart home assistants….lastly, a separate price index for alcoholic beverages was also 0.4% higher, while the price index for ‘other goods’ was 0.1% lower on a 1.1% decrease in the price index for cosmetics, perfume, bath, nail preparations and implements and a 0.2% decrease in the price index for stationery, stationery supplies, and gift wrap…
Within core services, the price index for shelter was 0.3% higher as rents rose 0.2%, homeowner’s equivalent rent was 0.3% higher, and prices for lodging away from home at hotels and motels rose 0.4%, while at the same time the shelter sub-index for water, sewers and trash collection rose 0.1%, and other household operation costs were on average 3.1% higher on a 6.4% increase in the price index for domestic services and a 5.5% increase in the price index for moving, storage, freight expenses…on the other hand, the price index for medical care services was 0.1% lower because the price index for health insurance fell 1.0%….but the transportation services price index was 1.5% higher as car and truck rentals rose 12.1%, the price index for airline fares rose 7.0%, the price index for parking fees and tolls rose 1.3% and the price index for vehicle insurance rose 0.7%…in addition, the recreation services price index rose 0.2% as the index for veterinarian services rose 1.2% and the price index for admissions to sporting events rose 1.5%…. at the same time, the index for education and communication services was also 0.2% higher as the price index for land-line telephone services rose 1.1%, the price index for elementary and high school tuition and fees rose 0.9% and the price index for delivery services rose 0.4%…lastly, the index for other personal services was 0.1% lower as the price index for haircuts and other personal care services was 0.6% lower while the price index for financial services fell 0.3%…
Among core line items, the price index for car and truck rental, which has now risen 109.8% from a year ago, the price index for used car and trucks, which is now up 29.7% from a year ago, the price index for airline fares, which is up 24.1% since last May, the price index for ther intercity transportation, which is up 11.1% over the same span, the price index for men’s pants and shorts, which is now up 12.3% from a year ago, the price index for women’s dresses, which has risen by 10.3% over the past year, the price index for jewelry, which is now up 14.7 from a year ago, the price index for lodging away from home including at hotels and motels, which has now risen 10.0% in the past year, the price index for domestic services, which has risen 13.7% year over year, the price index for moving, storage, freight expense, which is up by 16.2% over the last 12 months, the price index for laundry equipment, which is up 26.5% from last May, and the price index for “other furniture”, which is up 11.4% year over year, have all seen prices rise by more than 10% over the past year, while the price index for telephone hardware, calculators, and other consumer information items, which is now down by 19.1% since last May, is the only core line item to have decreased by a double digit magnitude over that one year span….