Gas was cheaper and rent was lower last month, but the cost of groceries was up a bit, as were the prices for some imports.
All of that meant just a small rise in the U.S. inflation rate.
According to information from the Labor Department, consumer prices rose 2.4% in May compared with a year ago, up from a 2.3% yearly increase in April. Not including food and energy categories, core prices rose 2.8% for the third straight month, The Associated Press reoprted. Economists pay close attention to core prices because they generally provide a better sense of where inflation is headed.
On a monthly basis, overall prices ticked up just 0.1% from April to May, down from 0.2% the previous month, a sign inflationary pressures remain muted, the AP reported. Core prices also dropped to 0.1% from 0.2%.
“You can point to seeing tariffs in this report, but the more important message is that you’re seeing inflation soften enough elsewhere that overall, price pressures continue to subside for the U.S. consumer,” Sarah House, an economist at Wells Fargo, told AP.
But some of those offsetting price drops for things like cars and air fares are unlikely to continue at the same pace for the rest of this year, she added.
“I don’t think this report signals an all clear – that tariffs are not going to be a concern for the inflation picture,” House said.
