CPI Rises 0.2% in May, Gas Drops for First Time in 11 Months

- CPI Rises 0.2% in May, Gas Drops for First Time in 11 Months



Jun 15, 2011

The Consumer Price Index (CPI) increased a seasonally adjusted 0.2% in May, the Bureau of Labor Statistics reported today, showing prices moderating somewhat from the 0.4% increase in April.

Economists had expected a 0.1% increase. The index has now increased 3.6% over the last twelve months.

The core CPI, which excludes food and fuel actually increased at a faster rate in the month, rising 0.3%. Economists had been expecting a 0.2% rise.

That's the largest increase in the core rate since July of 2008. Apparel, shelter, new vehicles, and recreation all contributed to the increase, more than offsetting declines in the prices for airline fares, tobacco, and personal care.

The food index rose as well, with the food at home index gaining 0.5% for the second month in a row.

The energy index declined 1.0%, with gasoline falling 2% alone. It's the first decline in the gas index since June of 2010.

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CPI Increases 0.5% In March

CPI Increases 0.5% In March



Apr 15, 2011

The consumer-price index increased 0.5% in March, led by increases in food and fuel costs, according to the Labor Department. The report was in-line with what economists had expected.

Core CPI, which excludes volatile food and fuel prices, rose 0.1% in the month, less than the 0.2% economists had forecast.

The index has now increased 2.7% in the past 12 months, the biggest year-over-year increase since December of 2009. Core CPI has risen 1.2% in that time frame.

As recently as October, the year-over-year gain was just 0.6%, the smallest rate of price increase since records began in 1958.

Energy costs increased 3.5% from a month earlier, the most since December, while gasoline prices jumped 5.6%.

Rising prices have caused economists to lower their forecasts for inflation adjusted consumer spending, which increased at a 2% annual rate in Q1, compared to a 4% gain in the fourth quarter of 2010.