18 Jun 2015
US CPI rises less than expected in May
FXStreet (Mumbai) - The official data released in the US on Thursday showed the inflation as measured by the consumer price index (CPI) stalled year-on-year in May, missing the estimate of a 0.2% rise. CPI had declined 0.2% in April. Month-on-Month, the CPI rose 0.4% in May, compared to a 0.5% rise expected.
Core CPI rises less than expected
The cost of living in the US excluding food and fuel rose less than forecast in May, a sign inflation may take time to meet the Federal Reserve’s goal.
Core CPI rose 1.7% year-on-year, missing the estimate of a 1.8% rise. The previous month’s print stood at 1.8%. Month-on-month core CPI rose 0.1% and failed to meet the expectation of a 0.2% rise.
The cost of clothing and used cars and trucks in May showed the biggest drop this year, and hotel rates declined by the most since October 2013. Moreover, the Fed’s preferred gauge of inflation, linked to consumer spending, has not been above the Fed’s 2% goal since March 2012. Meanwhile, the recent stability in the oil prices is helping inflation expectations increase towards the Fed’s target.
Core CPI rises less than expected
The cost of living in the US excluding food and fuel rose less than forecast in May, a sign inflation may take time to meet the Federal Reserve’s goal.
Core CPI rose 1.7% year-on-year, missing the estimate of a 1.8% rise. The previous month’s print stood at 1.8%. Month-on-month core CPI rose 0.1% and failed to meet the expectation of a 0.2% rise.
The cost of clothing and used cars and trucks in May showed the biggest drop this year, and hotel rates declined by the most since October 2013. Moreover, the Fed’s preferred gauge of inflation, linked to consumer spending, has not been above the Fed’s 2% goal since March 2012. Meanwhile, the recent stability in the oil prices is helping inflation expectations increase towards the Fed’s target.