United States: Inflation jumps up in May
June 18, 2013
In May, consumer prices rose 0.1% over the previous month in seasonally adjusted terms, which contrasted the 0.4% drop recorded in April. The result fell short of market expectations, which saw prices rising 0.2%. The print mainly reflects higher prices for energy, in particular for gasoline, as well as for shelter.
Building on the monthly rise, annual inflation jumped from 1.1% in April to 1.4% in May. Meanwhile, the core inflation index, which excludes food and energy, added 0.2% over the previous month, which matched market expectations. However, annual core inflation dropped to 1.9% (April: 2.0% year-on-year).
Annual average inflation over the previous 12 months flattened rising 1.7% in May, matching the reading from April.
FocusEconomics Consensus Forecast participants expect inflation to average 1.9% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, the panel anticipates average inflation to rise to 2.2%.