The Consumer Price Index released Wednesday showed that despite concerns about the impact of tariffs and trade wars, the month-to-month inflation increase was only 0.1%, pushing the annual inflation rate to 2.4%, according to the federal government.
The index for shelter rose 0.3% in May and was the primary factor in the all-items monthly increase. The food index also increased by 0.3%. However, the energy index declined slightly by 0.1% for the month of May as the price of gasoline fell.
The so-called core index that excludes more volatile food and energy costs, rose 0.1% in May following a 0.2% increase in April. Core index items that increased over the month include medical care, motor vehicle insurance, household furnishings and
operations, personal care, and education. The indexes for airline fares, used cars and trucks, new vehicles, and apparel were among the major indexes that decreased in May.
The year-over-year increase of 2.4% for all items followed a 2.3% rise in the costs of all items for the 12-month period that ended in April. The core index excluding food and energy prices rose 2.8% over the last 12 months.
The overall energy index decreased 3.5% for the 12-month period that ended in May. Gasoline prices were down 12% on an annual basis and fuel oil was down 8.6%, but electricity was up 4.5% and piped natural gas increased 15.3% on an annual basis.
The food index increased 2.9% over the 12-month period ending in May.
After the inflation report was released, U.S. stock indexes were slightly higher in midday trading, while bond yields and the dollar dropped.
