The May Consumer Price Index (CPI) data is in and it shows that inflation is starting to cool down again after months of dramatic increases.
This latest data shows that inflation in the all-items index increased by 4% over the last 12 months. That’s worth noting, as it is the smallest 12-month increase that the index has seen since April 2021.
Looking at what’s behind the latest inflation data, shelter prices have risen 8%, food away from home is up 8.3% and transportation services are up 10.2% year-over-year (YOY). On the flip side of that, several energy services have dropped over the same period, as have prices for used cars and trucks.
Month-By-Month May CPI Data
When comparing the CPI data from May to April, inflation increased by 0.1% during the month. That’s not nearly as large of an increase as the 0.4% jump seen in April. Falling energy prices was one of the main reasons inflation wasn’t higher.
What investors need to take away from this news is that weakening inflation may affect decisions made by the Federal Reserve. Indeed, the Fed is meeting today and tomorrow to go over the data and decide on any plans. Experts predict that this will be the first time in 15 months that the Fed won’t hike rates.
Investors keeping an eye out for even more of the latest stock market news will want to keep reading!
We have all of the biggest stock market stories that traders will want to read about on Tuesday! Among that is what’s going on with shares of Chinese stocks, the news lifting Manchester United (NYSE:MANU) stock higher, as well as a new price target for SoFi (NASDAQ:SOFI) stock. You can catch up on all of this news at the links below!
More Stock Market News For Tuesday
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
