The average cost of a market basket of goods and services in the United States increased 0.1percent in May, according to the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI). The May level of 212.8 is -1.02 percent lower than in May 2008.
On a seasonally adjusted basis, the CPI-U increased 0.1 percent in May after being unchanged in April. The energy index which had declined the previous two months, rose 0.2 percent in May as an increase in the gasoline index more than offset declines in other energy indexes. Prices increased in these categories, education and communication (+0.3), medical care (+0.3) and transportation (+0.8). The index for apparel declined (-0.2), food and beverages (-0.2) housing (-0.1) and other goods and services (-0.2). The index for recreation was virtually unchanged.
The core CPI, which excludes food and energy prices, increased 0.1 percent in May. Year-over-year core inflation in May was 1.8 percent.
The CPI is based on prices of food, clothing, shelter, fuels, transportation fares, charges for doctors’ and dentists’ services, drugs, and other goods and services that people buy for day-to-day living. Prices are collected in 87 urban areas across the country (including Kansas City and St. Louis) from about 50,000 housing units and approximately 23,000 stores, hospitals and other types of service establishments.
The actual index is expressed as a number derived by comparing the current cost of goods and services to the cost of the same items between 1982-1984. The reference year is given a value equal to 100. Subsequent indices are expressed as a percentage of the base year.
