Breaking Down Inflation in May 2023

Breaking Down Inflation in May 2023


People shop at Lincoln Market on June 12, 2023 in the Prospect Lefferts Gardens neighborhood in the Brooklyn borough of New York City.Michael M. Santiago | Getty Images News | Getty ImagesInflation slowed in May to the lowest rate in two years, largely on the back of declining prices for energy such as gasoline and electricity, the U.S. Bureau of Labor Statistics said Tuesday. But some areas of household budgets haven’t seen much improvement in recent months, a potential concern.Inflation measures how quickly prices are changing across the U.S. economy.The consumer price index increased 4% in May relative to a year earlier, a slowdown from 4.9% in April.The CPI is a key barometer of inflation, measuring prices of anything from fruits and vegetables to haircuts and concert tickets.[embedded content]May’s reading was the lowest annual figure since March 2021 and a significant decline from the 9.1% pandemic-era peak in June 2022.The decline doesn’t mean household expenses have fallen in aggregate, but that they aren’t rising as quickly.“The headline number is a positive thing,” said John Leer, chief economist at Morning Consult, a data provider. “People spend a lot of money on energy and the …

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