Inflation in the U.S. has only slightly weakened in May, according to data released on Wednesday by the Department of Labor, alongside a stronger decline in used car prices, but also a more pronounced increase in gasoline prices.
The annual inflation rate in May was 3.3 percent, down by 0.1 percentage point from the previous month, the department’s calculations show.
Excluding food and energy prices, core inflation was 3.4 percent, sliding to its lowest level in just over three years. Transportation saw the highest increase compared to May of last year, rising by 10.5 percent. This was followed by electricity, which increased by nearly six percent.
Gasoline was 2.2 percent more expensive compared to last May. In April, it had increased by 1.2 percent. Food prices, on the other hand, were up one percent in May, the same as in the previous month. Used cars and trucks saw the largest price drop, decreasing by 9.3 percent. In April, their prices had fallen by 6.9 percent.
The monthly comparison shows stable prices, following a 0.3 percent increase in April. The largest weight on prices was gasoline, which decreased by 3.6 percent compared to April when it had increased by 2.8 percent. Gas prices fell by 0.8 percent, significantly less than in April, when they had decreased by nearly three percent on a monthly basis. Electricity prices remained at the April level.
Energy prices fell by two percent on a monthly basis, after a 1.1 percent increase in April. Food prices were almost unchanged. When excluding food and energy, consumer prices rose by 0.2 percent on a monthly basis, slightly less than in April.
