(Center Square) – The latest federal data released on Tuesday showed inflation rose slightly last month.
The U.S. Bureau of Labor Statistics released its consumer price index for May, a federal marker of inflation that rose 0.1 percent last month, part of a 4 percent increase in the previous 12 months. Most economists say that 2% to 3% inflation is healthy for the economy.
“The shelter index was the largest contributor to the monthly increase for all items, followed by an increase in the used car and truck index,” the BLS said.
Food prices, which had held steady in recent months, rose again in May. During the Biden administration, food prices have risen significantly faster than overall inflation.
“The food index rose 0.2 percent in May after being unchanged in the previous two months,” the BLS said. “The eating-at-home index rose 0.1 percent for the month, while the eating-out index rose 0.5 percent.
The increase in other goods and services in May was offset by a decrease in energy costs. Despite this increase, increases in energy costs have been a key source of rising inflation in recent years.
“The energy index, on the other hand, declined 3.6 percent in May as the major energy component indices fell,” the BLS said.
The drop in the cost of energy is a welcome sight for Americans who experienced record gas prices last summer. However, many other items are becoming more expensive, meaning that if energy costs rise again, Americans could quickly find themselves back in the middle of serious cost-of-living increases.
“The index for all items except food and energy rose 0.4 percent in May, as it did in April and March. Indices that rose in May included shelter, used cars and trucks, home insurance motor vehicles, clothing and personal care,” BLS said. . “The Home Furnishings and Operations Index and the Airfare Index were among those that declined during the month.”
