US core consumer prices, which exclude volatile goods like as food and energy, climbed 0.4% month on month in May 2023, matching market expectations. Shelter, used automobiles and trucks, motor vehicle insurance, clothes, and personal care were among the indexes that rose in May. Among those that fell over the month were the indexes for domestic furnishings and operations and airline fares. Core consumer prices rose 5.3% year on year in May, following a 5.5% increase the previous month and matching market expectations.
While inflation in the United States came in generally in line with predictions, there are hints of slowing in certain key sectors. While house and vehicle prices remain high, the outlook is rapidly improving. This should reinforce expectations that the Fed will leave interest rates steady tomorrow, but the discourse around the decision is likely to remain hawkish.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 4.0 percent over the last 12 months to an index level of 304.127 (1982-84=100). For the month, the index increased 0.3 percent prior to seasonal adjustment.
The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1 percent in May on a seasonally adjusted basis, after increasing 0.4 percent in April, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 4.0 percent before seasonal adjustment.
The all items index increased 4.0 percent for the 12 months ending May; this was the smallest 12-month increase since the period ending March 2021. The all items less food and energy index rose 5.3 percent over the last 12 months. The energy index decreased 11.7 percent for the 12 months ending May, and the food index increased 6.7 percent over the last year.
After the release of US CPI numbers for May, the announcement of the US Federal Reserve’s interest rate will be a highly anticipated event for both domestic and global stock market investors. The FOMC meeting is underway on June 13-14, with the decision to raise interest rates to be revealed on June 14 at 2:00 p.m. ET or 11.30 IST.
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