Consumer Price Index Up Again in May

Core CPI, which excludes the volatile food and energy prices, rose 0.3 percent in April, bolstered largely by increases in the clothing (+1.2 percent) and new vehicles (+1 percent) indexes. Photo Credit NAHB

Consumer Price Index was up again in May, but unlike the previous 10 months, the increase was not driven by energy prices. Bureau of Labor Statistics reported a 0.2 percent (seasonally adjusted) increase in the CPI for All Urban Consumers in May-marking the eleventh consecutive increase in overall price levels. On a year-over-year basis, the all-items index is up 3.6 percent (not seasonally adjusted).

Although core CPI has trended up for 16 consecutive months, it still remains suggestive of modest levels of inflation, with a moderate 1.5 percent increase over May 2010.

The shelter index, housing's component of the CPI, rose a modest 0.2 percent in May, after increasing at a rate of 0.1 percent over the previous 7 months. The index for lodging away from home accounts for the most of last month's increase, up 2.9 percent between April and May.

Owners' equivalent rent and rent of primary residence maintained their steady pace of 0.1 percent for the past seven months. Compared to May 2010 both of these subcomponents have experienced modest gains, up 0.9 percent and 1.4 percent, respectively.

- Courtesy of NAHB