CPI

Full coverage of the markets and U.S. consumer-price index for May.

Prices for used cars and trucks rose 1.8% in May from April, reversing three months of declines. May’s increase was driven by sharp rises in the prices for energy, which rose 34.6% from a year earlier, and groceries, which jumped 11.9% on the year. The Labor Department on Friday said that the consumer-price index increased 8.6% in May from the same month a year ago, marking its fastest pace since December 1981.

Surging food, gas and energy prices all contributed to the gain, with fuel oil up 106.7% over the past year. Shelter costs, which comprise about one-third of ...

The paper asserts that the current inflation predicament is closer to the 1980s situation than it appears because of differences in the ways that CPI is computed then and now. With 75 basis points of interest rate rises already under its belt, markets widely expect the Fed to continue tightening policy through the year and possibly into 2023. ... I struggle to see how the Fed can back off." May's report likely solidifies the likelihood of multiple 50 basis point interest rate increases ahead. Real wages when accounting for inflation fell 0.6% in April, even though average hourly earnings rose 0.3%, according to a separate BLS release. The 5.5% 12-month gain is the most since February 1991. Excluding volatile food and energy prices, so-called core CPI was up 6%, slightly higher than the 5.9% estimate. New vehicle prices rose 1% in May. On a 12-month basis, real average hourly earnings were down 3%. Core inflation excluding food and energy rose 6%. Both were higher than expected. "Obviously, nothing is good in this report," said Julian Brigden, president of MI2 Partners, a global macroeconomic research firm. Friday's numbers dented hopes that inflation may have peaked and adds to fears that the U.S. economy is nearing a recession.

U.S. consumer prices accelerated in May to the highest since 1981, as Americans grapple with a surge in the cost of gas, food, and shelter, data showed ...

You can select 'Manage settings' for more information and to manage your choices. You can change your choices at any time by visiting Your Privacy Controls. Find out more about how we use your information in our Privacy Policy and Cookie Policy. Click here to find out more about our partners. - Information about your device and internet connection, including your IP address

The increase in the consumer price index in May was more than triple the gain in the prior month. Economists polled by The Wall Street Journal had forecast a ...

“U.S. inflation sped up in May, with nearly every item zooming higher, and another big core jump suggests the peak might be some ways off. The big worry on Wall Street is that inflation is shifting to services from goods. More bad news: Gas prices rose again in June and hit a record high. Either approach would be bad for the economy. The longer that goes on the more strain it will place on American households and hurt the economy. The central bank also risks inducing a recession in its effort to quell inflation. Speculation about a rate-hike “pause” in the fall looks farfetched. The last time inflation rose as rapidly was in 1981. Shelter costs account for a third or more of a typical household budget. Prices are likely to show another big increase in June. Gas prices have jumped again to record highs. Economists polled by The Wall Street Journal had forecast a 0.7% advance.

The latest Consumer Price Index showed a re-acceleration in inflation, dashing hopes that price increases had peaked.

The World Bank expects the rate of global consumer price inflation to drop below 3 percent next year. By contrast, the organization partly blamed inflation in the United States on “ over-buoyant demand,” which is more responsive to tighter monetary policy. The question — and big uncertainty — is how much Fed action will be needed to bring inflation under control. Data from the index is also used to come up with the P.C.E. figures. Rents are climbing swiftly as Americans compete for a limited supply of apartments, restaurant bills are heading higher as food and labor costs rise, and airline tickets and hotel rooms cost more because people are eager to travel and because inputs like fuel and labor are more expensive. At the same time, the war in Ukraine is cutting into the world’s supply of food and fuel, pushing overall inflation higher and feeding into the cost of other products and services. Travelers can save more than $100 each on the cost of a domestic flight and hotel stay if they plan trips in late August rather than in June or July. The price of gasoline rose 4.1 percent in May over the previous month, bringing the increase from a year ago to 48.7 percent. The central bank is expected to raise its benchmark rate by half a percentage point next week, and then again in July. Polls consistently show voters rate inflation as the country’s top economic problem and expect it to worsen. Friday’s release of Consumer Price Index data from the Labor Department contradicted, at least for a month, some of the administration’s more optimistic predictions. Fed officials are watching for signs that inflation is cooling on a monthly basis as they try to guide price increases back down to their goal, but Friday’s report offered more reason for worry than comfort.

US inflation accelerated to a fresh 40-year high in May, a sign that price pressures are becoming entrenched in the economy. That will likely push the ...

US inflation accelerated to a fresh 40-year high in May, a sign that price pressures are becoming entrenched in the economy. Shelter, food and gas were the largest contributors. The consumer price index increased 8.6% from a year earlier in a broad-based advance, Labor Department data showed Friday. The widely followed inflation gauge rose 1% from a month earlier, topping all estimates.

Today's report underscores why I have made fighting inflation my top economic priority. While it is good to see critical “core” inflation moderating, it.

The United States is on track to produce a record amount of oil next year, and I am working with the industry to accelerate this output. I call on Congress to pass a bill to cut shipping costs this month, and get it to my desk, so we can lower the price of goods. Putin’s Price Hike hit hard in May here and around the world: high gas prices at the pump, energy, and food prices accounted for around half of the monthly price increases, and gas pump prices are up by $2 a gallon in many places since Russian troops began to threaten Ukraine. Even as we continue our work to defend freedom in Ukraine, we must do more—and quickly—to get prices down here in the United States.

The increase in CPI was broad-based — driven by rising prices for shelter, gasoline and food — offering little comfort to those who had suggested that ...

“You’re seeing people move around a lot in those kinds of industries in search of the best options.” “Low-income voters are historically a low-turnout group, yet their strong turnout helped Biden and the Democrats win in 2020,” Carly Cooperman, a Democratic pollster, said. “And it’s the one market they’re kind of relying on to solve all their other problems.” “We really had a lot of demand-driven inflation in 2021,” Marc Goldwein, senior vice president and senior policy director at the Committee for a Responsible Federal Budget, said. Wages rose 4.7 percent from last year in April, according to the Atlanta Fed. Those working in traditionally lower-paid industries saw an even bigger jump. “A soft landing will be very difficult,” Goldwein said. Nearly seven in 10 voters say the economy is somewhat poor or very poor, a new Global Strategy Group poll provided to POLITICO found. “We are looking to inflation moderating in the months ahead,” a White House official told reporters on Thursday before the release of the numbers, citing rising labor force participation, declining job openings and slowing wage growth. The price of air travel jumped another 12.6 percent in May after rising 18.6 percent in April. “We’ve seen jet fuel costs go up by 40 percent since Putin’s aggression began,” the White House official said. “That’s a big deal, [especially] when your earnings are limited, and you’re living paycheck to paycheck, and there’s absolutely no wiggle room.” Economists had expected inflation to moderate somewhat this month, with some predicting that the price increases had peaked.

Today at 8:30 the Bureau of Labor Statistics will release the May 2022 data for the Consumer Price Index (CPI). The overall CPI rose at a year-over-year ...

It is a good indicator of the difficulty of the Fed’s task. It will be the result of strong policy actions, with the risk that those actions contribute to future recession risks. More important, it is not a type of inflation that is prone to sharp, erratic reversals. The Federal Reserve’s preferred measure of inflation – the market-based price index for personal consumption expenditure excluding food and energy – hit a recent peak of 5.2 percent in March and fell to 4.9 percent in April. Similarly, the Producer Price Index (PPI) for both final and intermediate producer goods showed the same modest reduction in inflation. The sole exception is the PPI for commodities, which remained on the rise. Eakinomics has no idea what the precise outcome will be, but its focus is on the inflation for shelter services (owned homes and rental units). Shelter inflation (shown below) is roughly one-third of the CPI and has shown no sign of peaking yet.

NEW YORK : U.S. stock futures turned negative and European shares fell further on Friday after higher-than-expected U.S. consumer price data for May fueled ...

Advertisement The yen rose off 20-year lows after Japanese policymakers made rare comments about its weakness. "At least in the goods economy, there are signs that demand is really slowing," Williams said. Advertisement The three indices posted their biggest weekly declines since January, tumbling roughly 5 per cent each. Advertisement Two-year yields, which are highly sensitive to rate hikes, spiked to 3.065 per cent, the highest since June 2008. Advertisement Economists polled by Reuters had expected CPI to rise 8.3 per cent annually.

The 8.6% increase is the highest since 1981. Many of the broader price increases were due to the continuous upward march of food, gas, and shelter costs.

Shelter costs, for instance, are up 5.5% year-over-year, gasoline costs (of all types) are up 48.7% year-over-year, and food prices increased 10.1% since last May—and were up 1.2% since April. Other notable price increases from the latest CPI Index include an increase of 12.6% for airline fares, and a 2.9% increase in dairy products year-over-year. In all, it means that the average American household is seeing its purchasing power erode further. The 8.6% increase is the highest since 1981, and was higher than expected.

Global equity markets slumped and the dollar strengthened on Friday after a bigger-than-expected U.S. inflation spike in May raised concerns the Federal ...

Japan's government and central bank said they were concerned by recent sharp falls in the yen in a rare joint statement, the strongest warning to date that Tokyo could intervene to support the currency. Register now for FREE unlimited access to Reuters.com Two-year yields , which are highly sensitive to rate hikes, spiked to 3.065%, the highest since June 2008. "At least in the goods economy, there are signs that demand is really slowing," Williams said. The yen rose off 20-year lows after Japanese policymakers made rare comments about its weakness. Register now for FREE unlimited access to Reuters.com Register now for FREE unlimited access to Reuters.com read more read more read more

The U.S. Labor Department's report showed the consumer price index (CPI) increased 1.0% last month after gaining 0.3% in April. Economists polled by Reuters had ...

Register now for FREE unlimited access to Reuters.com Register now for FREE unlimited access to Reuters.com Benchmark 10-year yields reached 3.178%, the highest since May 9. Tech and growth stocks, whose valuations rely more heavily on future cash flows, led the decline. Register now for FREE unlimited access to Reuters.com

Just after the Bureau of Labor Statistics released its May Consumer Price Index (CPI) report, Brookings convened an expert panel of economists to discuss ...

“One of the places where there’s a little bit of good news here is that one sector where monetary policy is particularly effective is in the housing sector,” said Edelberg. “Think about the channel of, you know, you raise mortgage rates and that’s going to slow demand for people purchasing homes. That’s not to say, ‘Hey, don’t worry about it,’ it’s actually a reason to worry even more because that can cause inflation expectations to rise and cause the next round of inflation. “So the pain is real, but it’s short run.” Because that’s one of the significant places where we’re seeing inflationary pressure, we can expect, it’s not going to happen instantaneously, but we can expect that monetary policy is going to help bring down shelter inflation. Wolfers added that high food prices are similarly salient, and the importance of these goods to households will yield additional political and economic consequences. Furman agreed that the government is on the right track. Agreeing with Furman’s 4 percent estimate of underlying inflation, Wolfer’s noted that, “I agree that that’s worrying, but it’s dramatically different than the headlines you’re going to read tomorrow. “The wage numbers, which, really we do think of as the important medium-run driver of inflation, aren’t that threatening, but the price numbers really are kind of miserable. I think that data, taken as a totality, says the underlying inflation rate may be around 4 percent, rather than the 8 percent headline CPI we’ve had over the last year.” But the pivot itself I think is good news if it means we’re starting to normalize.” I look at the monthly numbers, and in particular the monthly core number was an 8 percent annual rate if inflation went at this pace. In addition to the headline numbers, he continued on to say that the monthly numbers were also cause for concern.