Yahoo headline news usa8/25/2023 ![]() It's the last piece of data following a strong May jobs report, coupled with resilient readings on both the services and manufacturing sectors. The inflation data set will be a critical economic indicator ahead of the Federal Reserve's monetary policy decision on Wednesday. Federal Reserve Board Building in Washington, Friday, May 19, 2023. The energy index decreased 3.6% from April to May on a seasonally adjusted basis, led by a 7.7% drop in fuel oil prices, while food prices rose 0.2%.įederal Reserve Chairman Jerome Powell speaks during the Thomas Laubach Research Conference at the William McChesney Martin Jr. The energy index decreased 11.7% for the 12 months ending in May, while the food index increased 6.7% over the last year. ![]() Among the other indexes that rose in May was the index for used cars and trucks, which increased 4.4% for the second straight month, and the index for motor vehicle insurance, which increased 2%, the BLS noted. ![]() The shelter index, which jumped 8% annually and 0.6% between April and May, was the largest factor in the monthly increase of core inflation, accounting for over 60% of the total increase. Owners' equivalent rent is the hypothetical rent a homeowner would pay. The index for both rent and owners' equivalent rent rose 0.5% each. Both measures were also in line with economist expectations.Ĭore inflation remained especially sticky last month as rent prices continue to surge. On a "core" basis, which strips out the more volatile costs of food and gas, prices in May climbed 0.4% over the prior month and 5.3% over last year. The Fed has signaled it could pause its hikes, saying it would continue to assess incoming data ahead of the June meeting. The Fed has been raising interest rates to try to bring down inflation, but the central bank risks sending the economy into a recession by hiking rates too high too fast. Although the 4% jump in headline inflation represents a continued slowdown, it's still significantly above the Federal Reserve's 2% target.
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