The Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 0.2% in May on a seasonally adjusted basis. Over the last 12 months, the CPI increased 3.6% before seasonal adjustment.
Core inflation (CPI minus food and energy) increased 0.3% in May, its largest increase since July 2008. The indexes for apparel, shelter, new vehicles, and recreation all contributed to the acceleration, rising more in May than in April. Core inflation is up 1.5% over the last 12 months before seasonal adjustments.
While food prices rose in May, as four of the six major grocery store food group indexes increased, energy prices, which had been rising sharply, declined in May. The gasoline index decreased for the first time since last June.
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