Inflation Prices Rise To a Steady 0.3% in May, Fed Reports

The prices for inflation are seeming to cool off in the month of May as consumer spending slowed down, according to a Commerce Department report released Friday.

The personal consumption expenditures (PCE) price index — excluding food and energy — increased 0.3 percent for May, an increase of only 0.1 percent compared to the month of April.

From the same month one year ago, the PCE price index for May increased by 3.8 percent.

The core PCE increased 4.6 percent compared to a year ago, only 0.1 percentage points less than expected, still more than double the Fed’s 2 percent target.

Housing, according to the index, is up 8.3 percent from a year ago compared to 8.4 percent in April while the rent index was up 8.7 percent in May from a year ago, down from 8.9 percent in the processing month.

Furthermore, energy prices fell 3.9 percent and food prices were up another 0.1 percent.

Posted July 6, 2023.