Total CPI increased 0.2% (Briefing.com consensus +0.3%), led by gains in the indexes for gasoline (+1.7%) and shelter (+0.3%).
Core CPI, which excludes food and energy, also increased 0.2%, as expected, and was bolstered largely by the shelter index.
On a year-over-year basis, total CPI was up 2.8%, versus 2.5% in April. Core CPI was up 2.2%, versus 2.1% in April.
The energy index jumped 0.9% in May
The food index was flat in May, as a 0.2% decline in the index for food at home was offset by a 0.3% increase in the index for food away from home
The key takeaway from the Consumer Price Index for May is that it validated the expectation for a 25 basis points rate hike by the FOMC at its June meeting and provided some backing for the prevailing expectation among Fed members that there will be at least three rate hikes in 2018.| MAY | APR | MAR | FEB | JAN | |
|---|---|---|---|---|---|
| All Items | 0.2% | 0.2% | -0.1% | 0.2% | 0.5% |
| Food and Beverages | 0.0% | 0.3% | 0.1% | 0.0% | 0.2% |
| Housing | 0.2% | 0.3% | 0.3% | 0.3% | 0.2% |
| Equivalent Rent | 0.2% | 0.3% | 0.3% | 0.2% | 0.3% |
| Apparel | 0.0% | 0.3% | -0.6% | 1.5% | 1.7% |
| Transportation | 0.4% | 0.2% | -1.2% | 0.0% | 1.8% |
| Vehicles | -0.1% | -0.9% | -0.1% | -0.2% | 0.2% |
| Motor Fuel | 1.7% | 3.0% | -4.9% | -0.9% | 5.7% |
| Medical Care | 0.2% | 0.1% | 0.4% | -0.1% | 0.4% |
| Educ and Commun | 0.4% | 0.0% | -0.2% | -0.2% | 0.1% |
| Special Indices | |||||
| Core | 0.2% | 0.1% | 0.2% | 0.2% | 0.3% |
| Energy | 0.9% | 1.4% | -2.8% | 0.1% | 3.0% |
| Services | 0.2% | 0.1% | 0.2% | 0.3% | 0.3% |
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