Consumer prices crawled weakly higher in May and for the first time in three months while inflation plunged 1.3% in the past year to mark the largest decline since April 1950, the government reported Wednesday.
The Labor Department said the Consumer Price Index, which measures inflation pressures at the consumer level, inched 0.1% higher in May following a flat reading in April. The increase was less than generally expected, but many analyst are expecting more of the same tame readings in coming months.
"Inflation may be coming, but it’s not here yet and likely won’t be for some time," Richard Moody, chief economist at Forward Capital, was quoted on the AP.
"Inflation is not an issue,"Michael Moran, chief economist at Daiwa Securities America Inc. in New York, was quoted on Bloomberg. "There are huge amounts of slack in the economy and demand is quite soft, so it’s difficult to see how inflation can pick up for the balance of the year."
May’s higher energy costs — most specifically gasoline prices at the pump — were offset by lower food prices. Continue reading Inflation drops 1.3% in year; most in six decades, consumer prices rise 0.1%
U.S. consumer prices inched slightly higher in May and less than expected according to a new report released by the government on Wednesday. The same report revealed year-over-year inflation has fallen at the fastest rate since April 1950.
The Bureau of Labor Statistics Consumer Price Index (CPI) data has the annual US inflation rate at -1.3% compared to April’s 0.7% decline. Cheaper energy over the past year is largely responsible. Continue reading US Inflation Calculator Update
U.S. producer prices picked up in May, but they were less than expected despite increasing costs at the pump.
The Producer Price Index (PPI) rose by 0.2% last month, according to a report on Tuesday released by the Labor Department. The PPI measures prices at the factory door and inflation pressures before they reach the consumer.
"This clearly suggests there’s no inflation yet," Anika Khan, an economist at Wachovia Corp. in Charlotte, North Carolina, was quoted on Bloomberg. Price gains are "a gasoline story… companies can’t pass on the prices because the consumer is not in a situation to pay right now."
The PPI has fallen 5.0% in the past twelve months and is the biggest year-over-year decline since 1949. Continue reading Producer prices inch 0.2% higher on energy prices, inflation in check