Consumer prices jumped higher than expected, according to the latest data from the Bureau of Labor Statistics (BLS)
- Y-O-Y: The all items index jumped 5.0%, this was the largest jumped since August 2008.
- M-O-M: The index’s rate of growth actually fell in May to 0.6%, down from the 0.8% increase in April.
Only two categories saw a drop on an annualized basis in May…
- Medical care commodities fell 1.9% and nonalcoholic beverages fell 0.2%
Double-digit growth was not an uncommon sight in May…
- Gasoline appreciation led the way jumping up 56.2% followed by used cars & trucks (+29.7%), airline fares (+24.1%), vehicle insurance (+16.9%), and tobacco & smoking products (+7.3%)
Everyone expected these numbers to be hot, but these were hotter than expected. Economists surveyed by the Wall Street Journal had projected 4.7% growth for the month of May. (WSJ)
Ben Casselman had a good point on how we should evaluate these numbers. “Big price surges in other areas where business is rebounding: hotels, airfares and especially rental cars…Meanwhile, price increases are much more muted in areas less directly affected by the pandemic” (Twitter)