The US inflation data for May 2024 has been released, showing a deceleration in inflation. The Consumer Price Index (CPI) increased by 3.3% year-over-year, while the core CPI rose by 3.4% year-over-year. These figures came in slightly below expectations and were positively received by the markets.
Key Data:
CPI (Year-over-Year):
Previous: 3.4%
Expectation: 3.4%
Actual: 3.3%
Core CPI (Year-over-Year):
Previous: 3.6%
Expectation: 3.5%
Actual: 3.4%
Details:
According to Heather Long's report, annual inflation fell to 3.3% in May, while core inflation dropped to 3.4%. This decrease was primarily driven by a decline in gas prices. May saw the lowest monthly inflation rate in over a year. The charts indicate that core inflation reached its lowest point since April 2021.
Main Drivers of Inflation:
Rent: Remains the main driver of inflation.
Food: Showed a slight increase in prices.
Energy: Experienced a decrease in prices.
Category-Specific Changes:
Food: Up by 0.2%
Energy: Down by 3.7%
Shelter: Up by 0.5%
New Vehicles: Down by 0.2%
Used Cars and Trucks: Down by 4.2%
These figures suggest that the US economy is making progress in its fight against inflation. Markets are closely watching the Federal Reserve's next moves regarding monetary policy following this data.
This positive development in inflation data is seen as a good sign for investors and consumers. The US economy continues to take steps to mitigate inflationary pressures.