May CPI: Inflation ticked slightly higher on an annual basis last month

Inflation In May, the target federal reserve rate remained before the next meeting of the Central Bank this month.

The work statistics office said on Wednesday that Consumer price index (CPI) – A wide scale for the amount of daily goods such as gasoline, scaffold and rental cost – 0.1 % in May compared to last month, increased by 2.4 % on an annual basis.

These numbers were slightly cooler than the estimates of Economists included in LSEG, while the annual consumer price index increased from 2.3 % a month ago.

The so -called basic prices, which exclude more volatile measurements of gasoline and food to better assess price growth trends, increased by 0.1 % than the previous month and 2.8 % on an annual basis, both of which are less than economists’ estimates by 0.3 % and 2.9 %, respectively.

The growth of jobs continued to slow down in May, amid economic uncertainty

The report showed that inflationary pressures in the American economy are still fixed despite the progress of making inflation closer to Federal Reserve 2 % goal in recent years.

Creating high inflation is severe financial pressure for most American families, which are forced to pay more for daily necessities such as food and rent. It is especially difficult for low -income Americans, because they tend to spend more salary that has already been placed on necessities and have less flexibility to save money.

Food prices It increased by 0.3 % in May of the previous month and was 2.9 % higher on an annual basis. The home and food index increased from the home index by 0.3 % in May, increased by 2.2 % and 3.8 % on an annual basis, respectively.

Egg prices fell by 2.7 % in May, as the cooling trend continued after the industry witnessed rapid growth in prices last year due to the outbreak of bird flu, leaving prices 41.5 % over last year. The meat, poultry and fish index, as well as the dairy index, decreased by 0.1 % in May, while the fruit and vegetable index increased by 0.3 % and pimples and bakery products increased by 1.1 % for this month.

Consumer prices increased slightly in May. (Justin Sullivan / Getty Emokires / Getty Emoz)

The Federal Reserve witnessed inflation, the unemployed, the risks of stability at the May meeting, the minutes of the minutes

Energy prices 1 % decreased in May after a 0.7 % increase in April. The gasoline index decreased by 2.6 % in May, and decreased by 12 % from last year, while electricity prices increased by 0.9 % for this month and increased by 4.5 % compared to last year.

Prices of housing It increased by 0.3 % last month and was the main factor in leading the consumer price index. During the past year, the shelter index increased 3.9 %.

Transport costs decreased by 0.2 % last month, but they were 2.8 % higher than last year. The price of airlines decreased by 2.7 % in May, which is 7.3 % lower during the past year, while car insurance prices increased by 0.7 % last month and 7 % higher than last year.

Reducing economic growth expectations in the United States sharply due to the high customs duties

Federal Reserve Chairman Jerome Powell said the central bank will continue to monitor economic data before moving to interest rates. (Alex Wong / Getty Images / Getty Images)

The cooler inflation report is expected before the Federal Reserve meeting next week, when the central bank is expected to continue to maintain interest rates amid uncertainty about economic conditions. Economists expect consumer prices to rise due to the president Donald Trump The definitions, which were partially late and have not yet had a significant impact on inflation data.

“Despite sticky inflation, the customs tariff has not yet appeared at the prices of consumers, but a lot depends on the rate of absorption of American companies and foreign suppliers,” said Eric Tell, the chief investment official of Comeica Wealth Management. “We believe that the majority of customs duties will ultimately transfer to the consumer, but companies are cautious about this turn about passing the price increase.”

Sima Shah, chief international strategy in managing the main assets, added that although cold inflation data is somewhat reassuring, the impact of definitions is still waving on the horizon in the coming months.

Get Fox Business on the Go by clicking here

“The increases in the prices that depend on the customs tariff may not feed on the consumer price index data for another a few months, so it is too early to assume that the shock of prices will not be achieved. Just like economic activity data, there is no minimal signal in the current inflation numbers, and we are likely to need to wait until late summer before the effects of the tariff begin to appear-either in the margin data in profit or inflating data.”