MNI BRIEF: US May CPI Cooler Than Expected

U.S. CPI headline and core inflation cooled to 0.081% and 0.130%, respectively, in May, lower than analysts expected, as core goods prices saw deflation and core services inflation softened, the Bureau of Labor Statistics said Wednesday. The 12-month rate for headline and core CPI both were a tenth below forecast at 2.4% and 2.8%, respectively. 

Shelter prices rose 0.3% in May, same as in April, and was the primary factor in the all items monthly increase, the BLS said. Core services inflation excluding housing, or supercore CPI, slowed to just 0.061% from 0.209% in April and is nearly flat on a three-month basis. 

Core goods prices were down 0.04% in the month, according to an MNI calculation, led by used (-0.5%) and new vehicles (-0.3%) and apparel (-0.4%), compared to a 0.29% increase in April. Analysts expected May to be still too early to see notable broad-based signs of tariff-driven inflation in consumer prices. (See: MNI INTERVIEW: Fed Surveys Track Which Firms Will Raise Prices )