U.S consumer prices barely rose at all in May, the fourth straight month of mild inflation and a sign that the Trump administration’s tariffs have not raised prices on American households.
The consumer price index, the government’s main inflation indicator, 0.1 percent compared with a month earlier, the Department of Labor said Wednesday. Core prices, a measure that excludes volatile food and energy prices, also climbed just 0.1 percent.
Compared with a year ago, consumer prices are up 2.4 percent. Core prices have risen 2.8 percent.
Economists had forecast prices would rise 0.2 percent, matching the tame inflation figure reported for April. Core prices were expected to rise 0.3 percent, a slightly faster pace than the 0.2 percent seen in the prior month.
President Donald Trump’s presidency has been characterized by low inflation, defying predictions that his trade policies would push up consumer prices.
Energy prices fell 2.4 percent in May, led by a 2.6 percent decline in gasoline. Compared with a year ago, gasoline prices are down 12.0 percent.
Grocery prices rose 0.3 percent, partially reversing the prior month’s 0.4 percent decline. Over the past year, grocery prices are up 2.2 percent. Restaurant prices also rose 0.3 percent and are up 3.8 percent over the past year. Egg prices dropped 2.7 percent following the prior month’s 12.7 percent decline.
Durable goods prices, the broadest category that economists had thought would be heavily hit by tariffs, fell 0.1 percent in May and are flat compared with a year earlier. Nondurable goods prices fell 0.3 percent. Excluding food, nondurable goods prices dropped 0.9 percent.
The prices of new cars, one of the categories of goods expected to be under pressure from tariffs, fell 0.3 percent in May. This was the second month of declining car prices this year. In April, prices were flat. In March, new car prices ticked up just 0.1 percent. They fell in February after being unchanged in January.
Used car prices also fell in May, dropping 0.5 percent. This was the third straight decline for used car prices.
Prices of core goods, a metric which excludes food energy, were flat for the month and are up just 0.3 percent compared with a year ago.
Apparel prices, another category that many analysts said would face inflation pressure from tariffs, also fell. This was the second straight month of falling clothing prices. Prices of men’s and women’s shoes also fell.
Prices of household furniture climbed 0.3 percent after inching up 0.2 percent in April. They were flat in March and are unchanged for the year.
Appliance prices may be showing some tariff pressure. These rose 0.8 percent for a second straight month. Compared with a year ago, however, prices are down 0.8 percent, so the recent increases may also be a rebound from earlier deflation.
Smart phone prices fell in May, as they did in each of the two prior months. Computer prices rose by a sharp 1.1 percent in May but are down 3.5 percent over the past 12 months.
Inflation was mild even in services, which has been the source of inflationary pressures over the past year or so. Core services prices, a metric that excludes energy services, rose 0.2 percent in May. Excluding residential rents, services prices rose by a mild 0.2 percent.
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