Would You like a feature Interview?
All Interviews are 100% FREE of Charge
Inflation is falling, but rising rents are keeping it going.
The U.S. Bureau of Labor Statistics (BLS) released the monthly Consumer Price Index (CPI). report On Wednesday, it tracked changes in the prices Americans must pay for housing, food, energy and other basic goods and services.
The CPI is a measure of purchasing power, or how much more a dollar is worth now compared to a year ago or a month ago.
It is the most Widely used A measure of inflation. The Federal Reserve, the President, and Congress use the CPI as an economic indicator to set policy. US Federal Reserve Chairman Jerome Powell. Photo by Al Drago/Bloomberg via Getty Images
Here are three things you need to know:
1. Prices rose 3.3% year-over-year in May but remained flat month-over-month.
This is good news: Inflation has slowed for a second straight month.
Overall prices also remained stable after rising 0.3% in April.
Related: CPI Report: Inflation continues on rising rent and gas prices
Excluding food and energy prices, prices rose 0.2% from the previous month and 3.4% from last year, which is still Lower Exceeding analyst expectations.
2. Rising rents were the “biggest factor.”
Rents and landlord-equivalent rents rose 0.4% nationwide from April to May, offsetting a 3.6% drop in gasoline prices. This marks the fourth consecutive month that home prices have increased by this amount.
Rent was the “biggest driver” of overall inflation outside food and energy, rising 5.4% from last year.
3. Rent wasn’t the only factor.
Categories other than shelter have also seen notable price increases over the past year.
For example, auto insurance increased 20.3% and health insurance increased 3.1%.
Month-on-month, prices of used cars and trucks rose 0.6% after falling 1.4% in April.
Related: RealPage rent price manipulation investigation expands with FBI investigation
Will the Federal Reserve lower interest rates?
The Federal Reserve is due to release its policy statement at 2pm ET on Wednesday after a two-day meeting covering inflation, unemployment and expected interest rates.