The Consumer Price Index increased 0.5% on a seasonally adjusted basis in May, after rising 0.6% in April, the U.S. Bureau of Labor Statistics reported today. During the last 12 months, the all-items index, which factors in food and energy costs, increased 4.2% before seasonal adjustment, according to a statement.
“That was the highest year-over-year print since April 2023 and a sign that high energy costs stemming from the conflict with Iran are continuing to push up price pressures,” according to reporting in The Wall Street Journal.
According to the statement: “The index for all items less food and energy rose 0.2% in May. Indexes that increased over the month include communication, airline fares, medical care, personal care and recreation. Conversely, the indexes for motor vehicle insurance, household furnishings and operations, and new vehicles were among the major indexes that decreased in May.”
Of particular note is that the energy index increased 23.5% for the 12 months ending in May. Data gathered in May by Baird Research, the Marine Retailers Association of the Americas and Soundings Trade Only showed that dealers included high fuel costs among their macroeconomic concerns going into the summer boating season. Others included weak consumer sentiment, stubborn interest rates and inflation.
“Inflation is looming large for Federal Reserve policymakers as they gear up for their first gathering under new chairman Kevin Warsh in a week’s time,” according to the WSJ reporting. “The central bank is facing overlapping inflationary shocks from tariffs, energy costs and the investment boom in artificial intelligence.”
