Inflation Rose 4% Annually in May, Lowest in 2 Years
Summary from the AllSides News Team
The Consumer Price Index (CPI) rose 4% for the year ending in May, the lowest annual inflation rate since March 2021, according to the Bureau of Labor Statistics.
The Details: Prices rose 0.1% from April to May after rising 0.4% a month before; economists were expecting a 0.2% jump. Core inflation, which excludes volatile food and energy prices, rose 0.4% monthly and 5.3% annually. Used cars and trucks posted a 4.4% monthly price increase in May, the largest of all items in the CPI. Gasoline prices fell 5.6% from April to May, and were down 19.7% annually. Shelter and food prices both ticked up slightly from April to May, and were up 8% and 6.7% from a year ago, respectively.
For Context: The annual inflation rate has now fallen for 11 straight months.
How the Media Covered It: Sources across the spectrum covered the data prominently. Many framed it neutrally. Fox Business (Lean Right bias) highlighted how "Although inflation has cooled from a peak of 9.1%, it remains about more than double the pre-pandemic average and well above the Fed's 2% target rate." Similarly, CNN Business (Lean Left) headline said, "US inflation cooled significantly in May — but it’s still not where the Fed wants it." CNBC (Center) suggested rising core inflation shows "that while price pressures have eased somewhat, consumers are still under fire." NBC News (Lean Left) said inflation "is finally starting to meaningfully come down."
Featured Coverage of this Story
From the Left
Inflation cooled to 4% in May, the lowest reading since March 2021
Consumer price growth cooled again in May to the lowest level since March 2021, the Bureau of Labor Statistics reported Tuesday.
On an annual basis, price growth fell to 4%. Price growth climbed just 0.1% month-over-month.
The reading was slightly better than economists' forecast of 4.1% — and down significantly from 4.9% rate in April. On a monthly basis, forecast was for a 0.1% increase, lower than April's 0.4% reading.
The data shows that inflation — and the high prices that result from it — is finally starting to meaningfully...
From the Center
Inflation rose at a 4% annual rate in May, the lowest in 2 years
The inflation rate cooled in May to its lowest annual rate in about two years, the Labor Department reported Tuesday.
The consumer price index, which measures changes in a multitude of goods and services, increased just 0.1% for the month, bringing the annual level down to 4%. That 12-month increase was the smallest since March 2021, when inflation was just beginning to rise to what would become the highest in 41 years.
Excluding volatile food and energy prices, the picture wasn’t as optimistic.
So-called core inflation rose 0.4% on the...
From the Right
Inflation cools sharply in May to 4%, lowest in 2 years
The Labor Department said Tuesday that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose just 0.1% in May from the previous month, far lower than the 0.4% increase recorded in April.
Prices climbed 4% on an annual basis, slightly below the 4.1% increase forecast by Refinitiv economists.
It marked the slowest pace of inflation since March 2021.
Although inflation has cooled from a peak of 9.1%, it remains about more than double the pre-pandemic average and well above the...
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