by Martin Armstrong
Armstrong Economics
The consumer price index rose by 0.1% in May, bringing the annual rate of inflation to 2.4%. Excluding food and energy, the core CPI came in respectively at 0.1% and 2.8%.
Energy prices fell 2% last month, with gasoline experiencing a 2.6% decline that marked nearly a 12% year-over-year decrease. Fuel oil is down 9.6% for the year, but rose slightly by 0.9% on the month. Energy services rose 0.7% MoM and 6.2% YoY. Electricity ticked up 0.9% for the month; 3.6% for the year. Utilities have been experiencing a notable downtick after declining 1% in May and 15.7% for the year.
Food prices rose 0.3% on the monthly and 2.8% annually. Eggs, the media’s favorite item to watch, fell 2.7% for the month but still remain elevated by 41.5% compared to May 2024. Meats, poultry, fish, eggs saw a significant annual increase of 7%. Dairy items are up 1.6% in the past 12 months, and nonalcoholic beverages rose 3.2% in the same period. Food away from home rose 3.9% in the past year, with food at home rising 2% in the same time period. Full service meals and snacks are up 4.3% on the annual.