Consumer Prices Increase by 0.1% in May 2025, Indicating Steady Inflation

By News Desk - Jun 11, 2025, 05:30 AM ET

Last Updated - Jun 11, 2025, 08:31 AM EDT

Consumer Prices Increase by 0.1% in May 2025, Indicating Steady Inflation

The Consumer Price Index for All Urban Consumers (CPI-U) rises, highlighting inflationary trends over the year.

In May 2025, the Consumer Price Index for All Urban Consumers (CPI-U) recorded a modest increase of 0.1% on a seasonally adjusted basis. This follows a 0.2% rise in April, marking a consistent upward trend in consumer prices, with an overall 2.4% increase over the past year. This rise in CPI-U is a critical measure of inflation, reflecting the economic pressures faced by urban consumers.

Shelter and Food Prices Drive Inflationary Trends
The primary contributors to the increase in the CPI-U were shelter and food prices. The shelter index rose by 0.3% in May, with notable increases in rent and owners' equivalent rent, underscoring the housing market's role in inflationary pressures. Similarly, the food index increased by 0.3%, driven equally by rises in prices for food at home and food away from home. These components collectively played a significant role in the overall increase in consumer prices.

Energy Index Declines Amid Rising Prices
Contrasting the overall upward trend, the energy index saw a significant decline of 1.0% in May, largely due to a decrease in gasoline prices, which fell by 2.6%. Over the last 12 months, the energy index decreased by 3.5%, suggesting fluctuating energy costs have mitigated some inflationary pressures. Despite these declines, the electricity index increased by 0.9% over the month and 4.5% over the year, indicating mixed trends within the energy sector.

Core Inflation Reflects Broader Price Stability
The index for all items less food and energy provided a more stabilized view of inflation, rising by 0.1% in May, which aligns with the broader trend over the last 12 months where it rose by 2.8%. Specific sectors, including medical care and household furnishings, saw price increases, while transportation services experienced declines, such as a 2.7% drop in airline fares in May.

Yearly Trends Maintain Inflationary Outlook
Looking at the annual performance, the CPI-U reflects ongoing inflationary trends with a 2.4% increase over the last year. The shelter index marked a 3.9% rise, underscoring the persistent increase in housing costs. Meanwhile, the owners' equivalent rent recorded a 4.2% surge over the year, adding to the key housing market pressures. Overall, the data suggests inflation remains a consistent force in urban economic landscapes, influenced by varied sector-specific movements.

Article Source