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CPI News: Inflation Slows in May

The Consumer Price Index (CPI) for all urban consumers rose 4.0% for the 12 months ending in May, down from 4.9% in April. This was the smallest annual increase since March 2021. On a monthly basis, the CPI rose 0.1% in May, after rising 0.4% in April.


The slowdown in inflation was driven by a number of factors, including the easing of supply chain disruptions and a decline in energy prices. However, core inflation, which excludes food and energy, rose 5.3% for the 12 months ending in May, down from 5.5% in April. This suggests that inflation is still a significant concern for consumers and policymakers.


The Federal Reserve is expected to continue raising interest rates in an effort to combat inflation. However, it is unclear how quickly the Fed will be able to bring inflation under control. In the meantime, consumers are likely to continue to feel the pinch of higher prices.


Here are some of the key takeaways from the CPI report:


  • Inflation slowed in May, but it is still a significant concern for consumers and policymakers.

  • Core inflation, which excludes food and energy, rose 5.3% for the 12 months ending in May.

  • The Federal Reserve is expected to continue raising interest rates in an effort to combat inflation.

  • Consumers are likely to continue to feel the pinch of higher prices in the near future.

What does this mean for you?


If you are concerned about inflation, there are a few things you can do to protect your finances. First, make sure you have a budget and are tracking your spending. This will help you identify areas where you can cut back. Second, consider investing in assets that tend to hold their value during periods of inflation, such as stocks, bonds, and real estate. Finally, stay informed about the latest economic news so you can make informed financial decisions.


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