Consumer Prices Rise by 1 Percent in May, the Second Highest Monthly Increase in a Year

Year-over-year increase of 8.6 percent is highest in forty years.

Gasoline and Food rose faster than the overall average, with gasoline up 4.1 percent over the previous month and 49 percent higher in a year, while food was 1.2 percent higher for the month, 10.1 percent for the year.
Overall Energy, which also includes home electricity, rose 3.9 percent for the month and 34 percent for the year.
New and Used Vehicles also registered higher than average inflation, up 12.6 percent and 16.1 percent, respectively for the year. New vehicle price increases are the highest in nearly 50 years.
Total Housing costs, including rental and home ownership, home energy and home furnishings, showed a yearly increase of 6.9 percent, slightly better than overall inflation.
Within our industry, Total Appliances prices tracked better than overall inflation, up 6.4 percent for the year, with large appliances 9.5 percent higher and small appliances a more modest 4.8 percent higher.
Rising inflation is causing extreme pessimism, with consumer confidence dropping to its lowest historical level, 50.2 for the month, according to The University of Michigan’s Index of Consumer Sentiment.