Consumer Price Index

The US consumer price index gained significantly in May, as today's monthly report showcased a worrisome 0.6% increase. The report was above the 0.5% expected by economists. Core CPI, which excludes energy and food prices because of their volatile nature, increased 0.2%. That was inline with expectations. Year-over-year, consumer prices have increased 4.2%. Core CPI gained 2.3% in the same period.

The monthly gain was largely attributed to an increase in consumer energy prices. Energy prices in the US rose 4.4%, the biggest gain since November. Gasoline prices also rose, at a seasonally-adjusted 5.7% for the month.

Report Details

Food prices ticked 0.3% higher, with beef prices up 1.5%, while dairy, pork and fruit prices fell.

Prices for bread and cereal rose 1.6%.

Apparel prices fell 0.3% and are down 0.6% in the past year.

Prices for medical care increased 0.2% and have risen just 1.8% on an annualized basis over the past three months. Drug prices fell 0.7%.

New vehicle prices fell 0.1%, while air fares soared 3.2%, the biggest gain in six years.

Recreation prices rose 0.1%, while education and communication prices grew 0.4%.

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