CPI for all Items Rises 0.6% in May as Many Indexes Increase

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6% in May on a seasonally adjusted basis after rising 0.8% in April, the U.S. Bureau of Labor Statistics reported. Over the last 12 months, the All Items Index increased 5.0% before seasonal adjustment; this was the largest 12-month increase since a 5.4% increase for the period ending August 2008.

The index for used cars and trucks continued to rise sharply, increasing 7.3% in May. This increase accounted for about one-third of the seasonally adjusted all items increase. The food index increased 0.4% in May, the same increase as in April. The energy index was unchanged in May, with a decline in the gasoline index again offsetting increases in the electricity and natural gas indexes. The index for all items less food and energy rose 0.7% in May after increasing 0.9% in April. Many of the same indexes continued to increase, including used cars and trucks, household furnishings and operations, new vehicles, airline fares, and apparel. The index for medical care fell slightly, one of the few major component indexes to decline in May.

The All Items Index rose 5.0% for the 12 months ending May; it has been trending up every month since January, when the 12-month change was 1.4%. The index for all items less food and energy rose 3.8% over the last 12-months, the largest 12-month increase since the period ending June 1992. The energy index rose 28.5% over the last 12-months, and the food index increased 2.2%.

Food

The food index increased 0.4% in May. The index for food at home increased 0.4%, the same increase as in April. However, while the April index was broad-based, with all six major grocery store food group indexes rising, the May increase was mostly due to the index for meats, poultry, fish, and eggs, which increased 1.3% over the month. The beef index rose 2.3% in May, its largest increase since last June. The index for cereals and bakery products rose 0.5% in May, and the index for dairy and related products increased 0.4%. In contrast to these increases, the index for nonalcoholic beverages declined in May, falling 0.5%.

The index for fruits and vegetables was unchanged in May after rising in each of the last 3 months. The index for fresh vegetables rose 0.5% in May, but the index for fresh fruits declined 0.3%. The index for other food at home was also unchanged in May after increasing in April. The food away from home index rose 0.6% in May following a 0.3% increase in April. The index for full-service meals rose 0.6%, its largest increase since last June. The index for limited-service meals increased 0.5%, the same increase as in both March and April.

The food at home index increased 0.7% over the past 12 months. Five of the six major grocery store food group indexes increased, but the index for fruits and vegetables was the only one to rise more than 0.6%; it increased 2.9%. The only index to decline was nonalcoholic beverages, which fell 0.2% over the last 12 months.

The index for food away from home rose 4.0% over the last year. The index for limited-service meals rose 6.1% since May 2020. The index for full-service meals rose 4.1% over the last 12 months; this was its largest 12-month increase since the period ending October 2008. The index for food at employee sites and schools declined sharply over the last year, falling 34.4%.

Energy
The energy index was unchanged in May after declining slightly in April. As in April, the gasoline index fell, while other energy component indexes increased. The gasoline index declined 0.7% in May after falling 1.4% in April. (Before seasonal adjustment, gasoline prices rose 4.2% in May.)

The index for natural gas increased 1.7% in May, while the index for electricity advanced 0.3% following a 1.2% increase the prior month. The energy index rose 28.5% over the past 12 months. The gasoline index rose 56.2% since May 2020, when it was at its lowest level since February 2016. The May 2021 increase was the largest 12-month increase since the period ending April 1980. The index for electricity increased 4.2% over the last year, while the index for natural gas rose 13.5%.

All Items Less Food and Energy

The index for all items less food and energy rose 0.7% in May following a 0.9% increase in April. The index for used cars and trucks continued to rise sharply, increasing 7.3% in May after a 10.0% increase in April. The shelter index rose 0.3% in May. The index for rent rose 0.2% and the index for owners’ equivalent rent increased 0.3%. The index for lodging away from home, which rose 7.6% in April, increased 0.4% in May.

The household furnishings and operations index increased 1.3% in May, its largest monthly increase since January 1976. The indexes for domestic services and for furniture and bedding were among the component indexes contributing to the increase. The index for new vehicles rose 1.6% in May, its largest one-month increase since October 2009. The index for airline fares continued to increase, rising 7.0% in May after increasing 10.2% the prior month. The apparel index also rose in May, increasing 1.2%.

The index for car and truck rentals continued to rise, increasing 12.1% after rising 16.2% the prior month. The index for recreation rose 0.2% in May following a 0.9% increase in April. The motor vehicle insurance index advanced 0.7% in May after increasing 2.5% the prior month. The indexes for education, for communication, and for alcoholic beverages also increased in May.

The medical care index declined 0.1% in May after rising in each of the four previous months. Medical care component indexes were mixed. The index for prescription drugs declined 0.3% in May after rising 0.5% in April. The hospital services index increased 0.2%, while the physicians’ services index was unchanged.

The index for all items less food and energy rose 3.8% over the past 12 months. The index for used cars and trucks increased 29.7%, while the index for motor vehicle insurance rose 16.9%. The index for new vehicles rose 3.3% over the past 12 months, its largest 12-month increase since the period ending November 2011. The index for car and truck rental more than doubled over the past 12 months, rising 109.8%. The shelter index increased 2.2% over the last 12 months. The medical care index rose 0.9% over the past 12 months, its smallest increase since the period ending March 1941.

Not Seasonally Adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 5.0% over the last 12 months to an index level of 269.195 (1982-84=100). For the month, the index increased 0.8% prior to seasonal adjustment. The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 5.6% over the last 12 months to an index level of 263.612 (1982-84=100). For the month, the index rose 0.9% prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 5.0% over the last 12 months. For the month, the index increased 0.8% on a not seasonally adjusted.