Inflation remained tame in May, rising just 0.1%, with shelter costs as the largest contributor; year-over-year inflation rose slightly 2.4%.
Food prices reversed earlier declines, climbing 0.3% in May, with notable increases in cereals, bakery products, and dining out, despite ongoing price drops in eggs and dairy.
Other consumer costs showed mixed trends, with car insurance jumping 0.7% and rent continuing to rise, while energy prices fell and vehicle repair costs slightly dipped.
Despite worries about the effects of tariffs, the Consumer Price Index in May rose just 0.1%, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the inflation rate ticked up to 2.4%, slightly lower than in April.
Once again, the cost of housing was the biggest influence on prices. The index for shelter rose 0.3% in May and was the primary factor in the all-items monthly increase.
The food index increased 0.3% as both of its major components, the index for food at home and the index for food away from home, also rose 0.3% in May.
In contrast, the energy index declined 1.0% in May as the gasoline index fell over the month.
After moderating earlier in the year, food prices have begun to tick higher again, perhaps influenced by tariffs on food imports.
Food price breakdown
Overall Food Index: The food index rose 0.3% in May, reversing a 0.1% decline in April. This change added moderate upward pressure to the overall CPI.
Food at Home: Prices for groceries (food at home) also increased 0.3%, showing that inflation wasn’t confined to restaurants or dining out.
Increases:
Other food at home: +0.7% (rebounding from a -0.1% drop in April).
Cereals and bakery products: +1.1%, the largest monthly gain in this category.
Fruits and vegetables: +0.3%.
Decreases:
Meats, poultry, fish, and eggs: -0.4%, with eggs down 2.7%.
Nonalcoholic beverages: -0.3%.
Dairy and related products: -0.1%.
Food Away From Home: This category, which includes restaurants, rose 0.3%, with equal increases in both full service and limited service meals.
Other factors
Car insurance remains a significant pain point for consumers. The cost of insurance rose 0.7% in May and is up 7% year-over-year.
The cost of repairing and maintaining cars and trucks declined 0.1% in May but is up 5.1% over the last 12 months.
The cost of rent rose 0.2% in May, slightly less than increases in March and April. For the last 12 months, rent has risen 3.8%, less than the rise in home ownership costs.