US May CPI increased by 4% year-on-year | month on month | US
On the 13th, the US Department of Labor released data showing that the US Consumer Price Index rose 4.0% year-on-year and 0.1% month on month in May.
This is the smallest year-on-year increase in US CPI data since March 2021. Due to better than market expectations in the US inflation data, analysts generally believe that the Federal Reserve is likely to pause interest rate hikes once after its monetary policy meeting on the 14th.
The Wall Street Journal pointed out that May's CPI data provides room for adjustment for the Federal Reserve's decisions. Although the inflation data in the United States is still "overheated," the speed of CPI cooling is enough for the Federal Reserve to "choose to raise interest rates again, or simply not raise them.".
The data shows that the main driving factors for the price increase in May in the United States came from the increase in used car and housing prices. The prices of used cars in the United States have risen by 4.4% month on month for the second consecutive month. Housing prices increased by 0.4% month on month and 8.0% year-on-year in May.
The decline in energy prices partially offset the inflationary pressure in the United States in May. In that month, energy prices in the United States decreased by 3.6% month on month, with gasoline prices falling by 5.6% month on month, creating the largest month on month decline this year.
After excluding volatile food and energy prices, the core CPI in the United States increased by 5.3% year-on-year in May, while the month on month increase remained at 0.4% for the third consecutive month.
The Associated Press believes that although there are some "positive signs" in May CPI data, it is still not enough to convince Federal Reserve policymakers that the high inflation that has plagued the United States for more than two years is coming to an end.