--US consumer prices +0.4% in May; core rate +0.1%
--Ex-energy, US May consumer prices +0.1%; energy +3.1%
--US May CPI gasoline prices +6.0%; fuel oil +0.5%
--US May tobacco -1.3; food prices +0.3%; new auto prices -0.1%
--US May consumer shelter prices +0.5%; apparel -0.9%
--US May CPI +3.6% from year ago; core CPI +2.5%
--US real average weekly earnings in May +0.2%
--Labor aide: US retailer discounts offset wholesale tobacco price rises
By Andrew Williams Washington, June 15 (BridgeNews) - Inflation in the U.S. economy mostly remained in check in May as consumer prices rose 0.4%, pushed up by energy prices, the Labor Department said Friday. Excluding volatile food and energy costs, "core" consumer prices rose only 0.1%. Analysts had expected the overall CPI to rise 0.4%, and the "core" CPI to post a 0.2% increase.
The May rise in the CPI is an acceleration from the 0.3% rise posted the month before, while the increase in the "core" CPI is slower than the 0.2% advance in April. During the last 12 months, the CPI has moved up 3.6%, while the core CPI has risen 2.5%. For all of 2000, the CPI climbed 3.4%, while the "core" CPI rose 2.6%. Economists and the Federal Reserve often strip out volatile food and energy costs to get a better reading on the underlying inflation rate.
LEADING THE WAY
Leading the May CPI increase was energy costs, which climbed 3.1%, pushed higher by a 6.0% rise in gasoline, a 1.3% increase in electricity, and a 0.5% rise in fuel oil. However, natural gas prices fell 0.5%. Excluding energy, consumer prices rose only 0.1%. Meanwhile, food prices in May rose 0.3%, the sixth straight increase. Dairy products rose 0.8%, pork climbed 0.6%. However, fresh vegetable prices fell 2.8%, while poultry fell 0.5%.
Excluding food and energy, the core rate of retail inflation held in check by a decline in tobacco and recreation prices. However, shelter costs increased 0.5%. Tobacco prices unexpectedly fell 1.3%. Tobacco companies had announced price increases at the beginning of May because legal costs, and analysts had expected the prices to filter down to the retail level before the CPI survey. However, a Labor Department economist said that discounts by retailers more than compensated for the big wholesale price increases in May.
Other key prices included:
--Apparel prices fell 0.9 %
--Airline fares rose 0.8%.
--Automobile costs fell 0.1%
--Medical care costs rose 0.3%
WHAT WAS EXPECTED:
Analysts' estimates for the May CPI ranged between up 0.2 and up 0.4%, while the expectations for the core rate ranged between up 0.1% and up 0.3%, according to the BridgeNews survey. OTHER DETAILS:
--The seasonally adjusted CPI-U rose to 177.5 in May, from 176.8 in April. The index was at 100 for the period 1982-1984. The unadjusted consumer price index rose to 177.7 in May from 176.9 the prior month. The US Treasury uses the unadjusted CPI-U to compute the inflation impact on inflation-adjusted securities. --In a separate report, Labor said real average weekly earnings of U.S. non-farm workers rose 0.2% in May following a revised 0.4% decrease the previous month. The rise reflected a 0.3% increase in hourly earnings, a 0.3% rise in the average number of hours worked per week, and a 0.3% increase in the consumer price index for urban wage earners and clerical workers (CPI-W).