Consumer Prices Rose 4% in the Year through May, a Sign Inflation Is Cooling

The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1 percent in May on a seasonally
adjusted basis, after increasing 0.4 percent in April, the U.S. Bureau of Labor Statistics
reported today. Over the last 12 months, the all items index increased 4.0 percent before
seasonal adjustment.

The index for shelter was the largest contributor to the monthly all items increase, followed by
an increase in the index for used cars and trucks. The food index increased 0.2 percent in May
after being unchanged in the previous 2 months. The index for food at home rose 0.1 percent over
the month while the index for food away from home rose 0.5 percent. The energy index, in
contrast, declined 3.6 percent in May as the major energy component indexes fell.

The index for all items less food and energy rose 0.4 percent in May, as it did in April and
March. Indexes which increased in May include shelter, used cars and trucks, motor vehicle
insurance, apparel, and personal care. The index for household furnishings and operations and
the index for airline fares were among those that decreased over the month.

The all items index increased 4.0 percent for the 12 months ending May; this was the smallest
12-month increase since the period ending March 2021. The all items less food and energy index
rose 5.3 percent over the last 12 months. The energy index decreased 11.7 percent for the 12
months ending May, and the food index increased 6.7 percent over the last year. 

Food

The food index rose 0.2 percent in May. The food at home index increased 0.1 percent over the
month, following a 0.2-percent decrease in April. Three of the six major grocery store food group
indexes increased over the month. The index for fruits and vegetables increased 1.3 percent in
May, following a 0.5-percent decrease in April. The other food at home index rose 0.4 percent
over the month, and the nonalcoholic beverages index increased 0.7 percent. 

The index for meats, poultry, fish, and eggs decreased 1.2 percent in May, as the index for eggs
fell 13.8 percent, the largest decrease in that index since January 1951. The dairy and related
products index declined 1.1 percent over the month, and the cereals and bakery products index was
unchanged in May.

The food away from home index rose 0.5 percent in May. The index for full service meals increased
0.4 percent over the month and the index for limited service meals increased 0.5 percent. 

The food at home index rose 5.8 percent over the last 12 months. The index for cereals and bakery
products rose 10.7 percent over the 12 months ending in May. The remaining major grocery store
food groups posted increases ranging from 0.3 percent (meats, poultry, fish, and eggs) to 9.2
percent (other food at home).

The index for food away from home rose 8.3 percent over the last year. The index for full service
meals rose 6.8 percent over the last 12 months, and the index for limited service meals rose 8.0
percent over the same period. 

Energy

The energy index fell 3.6 percent in May after rising 0.6 percent in April. The gasoline index
decreased 5.6 percent in May, following a 3.0-percent increase in the previous month. (Before
seasonal adjustment, gasoline prices fell 1.4 percent in May.) 

Other energy components also declined. The natural gas index decreased 2.6 percent over the month
, the fourth consecutive decrease in that index. The index for electricity decreased 1.0 percent
in May, after falling 0.7 percent in both April and March. The fuel oil index also declined in
May, down 7.7 percent.

The energy index fell 11.7 percent over the past 12 months. The gasoline index decreased 19.7
percent over the last 12 months, while the natural gas index fell 11.0 percent, and the fuel oil
index fell 37.0 percent over the span. In contrast, the index for electricity rose 5.9 percent
over the last year. 

All items less food and energy

The index for all items less food and energy rose 0.4 percent in May, as it did in April and
March. The shelter index increased 0.6 percent over the month after rising 0.4 percent in April.
The index for rent rose 0.5 percent in May, as did the index for owners' equivalent rent. The
index for lodging away from home increased 1.8 percent in May after decreasing 3.0 percent in
April. 

The shelter index was the largest factor in the monthly increase in the index for all items less
food and energy. Among the other indexes that rose in May was the index for used cars and trucks,
which increased 4.4 percent, and the index for motor vehicle insurance which increased 2.0
percent. The indexes for apparel, personal care, and education also increased in May. 

Several indexes declined in May, led by the household furnishings and operations index which fell
0.6 percent over the month. This was the first decline in that index since June 2021 and also the
largest 1-month decline since August 2009. The index for airline fares decreased 3.0 percent over
the month, following a 2.6-percent decline in April. The index for communication fell 0.3 percent
over the month. The index for new vehicles and the index for recreation each declined 0.1 percent
in May.

The medical care index increased 0.1 percent in May, after being unchanged the previous month. The
index for hospital services rose 1.0 percent over the month, after a 0.5-percent increase in
April. The prescription drugs index increased 0.1 percent in May, while the physicians' services
index declined 0.5 percent. 

The index for all items less food and energy rose 5.3 percent over the past 12 months. The
shelter index increased 8.0 percent over the last year, accounting for over 60 percent of the
total increase in all items less food and energy. Other indexes with notable increases over the
last year include motor vehicle insurance (+17.1 percent), recreation (+4.5 percent), household
furnishings and operations (+4.2 percent), and new vehicles (+4.7 percent). 

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 4.0 percent over the last 12
months to an index level of 304.127 (1982-84=100). For the month, the index increased 0.3 percent
prior to seasonal adjustment.  

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 3.6
percent over the last 12 months to an index level of 298.382 (1982-84=100). For the month, the
index increased 0.2 percent prior to seasonal adjustment.  

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 4.3 percent over the
last 12 months. For the month, the index increased 0.2 percent on a not seasonally adjusted basis.
Please note that the indexes for the past 10 to 12 months are subject to revision.