US May Consumer Prices Fell 0.1%, Annual Increase Below 2.0%

USA consumer prices unexpectedly fell in May as the cost of gasoline and a range other goods declined, pointing to a moderation in inflation pressures that could impact on further interest rate increases this year.

The U.S. Labor Department said Wednesday that the consumer price index edged down 0.1% last month following a small 0.2% increase in April.

The increase in the short-term rate by a quarter-point to a still-low range of 1 percent to 1.25 percent could lead to higher borrowing costs for consumers and businesses and slightly better returns for savers. The Australian dollar rose 1.25 percent to the highest against its USA counterpart since April 3 after the release of the data.

The so-called core CPI, which strips out food and energy costs, rose 0.1 percent in May after a similar gain in April as rents continued to increase moderately.

Yet the more recent softening trend might give the Fed space to continue to raise interest rates at a gradual pace. The U.S. dollar has usually softened in 2017; however, this is not yet showing up in higher prices at the consumer level, said TD Economics.

And gasoline stations saw sales drop 2.4 percent, the biggest decline since February of previous year. Monthly prices fell for apparel, airfare, communication and medical care services, the Labor Department said.

DOJ Presents Trump's Stymied Travel Ban to Highest Court
It needs a compelling case to win a certain number of votes in order to be heard in the Supreme Court. But it is not just lawyers who are frustrated by the deluge of Trump's tweetstorms.

The dollar index was last down 0.6 percent at 96.437, after earlier touching its lowest since November 9 at 96.323. Further rate hikes are likely to depend on the outlook for inflation and economic growth.

The 12-month overall price measure fell below the Fed's two per cent target to 1.9 per cent last month, continuing a steady decline since February, while the core, which has been falling since January, slipped another two-tenths to 1.7 per cent. Those figures would rise in increments over a year until they reached $30 billion a month in Treasurys and $20 billion in mortgage bonds.

Turning to retail sales, those fell by 0.3% month-on-month in May, marking their biggest drop since January a year ago.

Economists polled by Reuters had forecast the CPI unchanged last month and advancing 2.0 percent from a year ago. Receipts at service stations dropped 2.4 per cent, the largest decline since February 2016. That has led some retailers, including Macy's, Sears and Abercrombie & Fitch to announce shop closures.

CPI inflation in May is at the lower end of the RBI's projected headline inflation band of 2-3.5 per cent in the first half the current fiscal. The 2.7 percent fall in energy prices mainly drove the drop in consumer price index. Sales at electronics and appliance stores plunged 2.8 per cent, the largest drop since March 2010. Over the past 12 months, food costs are up just 0.9 percent while energy prices have risen 5.4 percent. Receipts at restaurants and bars dipped 0.1 per cent, while sales at sporting goods and hobby stores fell 0.6 per cent.

Related News:

  • Trump hails sacrifices of fallen troops

    Trump hails sacrifices of fallen troops

    After the address, Trump visited a section of the cemetery for USA service members killed in the Iraq and Afghanistan wars. Trump's remarks at the Memorial Day ceremony was his first public appearance since returning from a nine-day foreign trip.
    Team NZ take nosedive amid tough America's Cup conditions

    Team NZ take nosedive amid tough America's Cup conditions

    He said the team planned to fix that wing sail and use it in two scheduled races against the Kiwis on Tuesday. This was the most serious of Ainslie's troubles this spring. "We knew something fundamental was wrong".

    Apple Announces watchOS 4 for Apple Watch with Siri Smart Watchface, More

    Kevin Lynch, chief of Apple's software efforts, highlighted a new watch face that was "powered by Siri intelligence". Apple also introduced new summer band colours, giving customers more options to choose from.
  • Oil markets slow to balance, OPEC economists say

    Oil markets slow to balance, OPEC economists say

    Though they remained lower on the day, US Treasury yields pared declines, with traders citing the hawkish tone of the statement. This upward adjustment was mainly due to the downward revision in non-OPEC supply as world oil demand remained unchanged.

    New smart speaker expected as Apple kicks off conference

    The HomePod is Apple's first new gadget in almost three years, following its announcement of the Apple Watch in September 2014. Google recently launched its own Echo imitation, the Google Home, powered by the still-nameless Google Assistant.

    London mayor calls for cancellation of Trump visit to UK

    He was a known associate of notorious hate preacher Anjem Choudary , and a follower of Choudary's banned al-Muhajiroun network. A former colleague told the Mail : "He went to Westminster, then Canada Water, then didn't pass his probation period.
  • Russian opposition leader Alexei Navalny 'arrested on way to protest'

    Russian opposition leader Alexei Navalny 'arrested on way to protest'

    On everyone's lips is the huge protest on Monday to demand an inquiry into corruption at the highest echelons of power. Navalny was arrested Monday afternoon outside his home in Moscow as he headed for an unsanctioned protest rally.

    Captain Kane rescues England against Scotland

    Scotland's deep-lying 5-4-1 system starved England's creative players of space, but gradually cracks began to appear. Before the game we would have taken the point but it was just the way it happened, but that's football for you.
    States review election systems for signs of hacking

    States review election systems for signs of hacking

    Officials in at least five counties in Florida - a key political swing state - received the emails, the Miami Herald reported . New evidence from a leaked intelligence document suggests that foreign adversaries are exploring ways to attack it anyway.
  • DC, Maryland to sue President Trump for alleged breach of constitutional oath

    The litigation is similar to a case filed this year by Citizens for Responsibility and Ethics, a Washington watchdog group. President Donald Trump waits to speak during the National Peace Officers Memorial Service on the West Lawn of the U.S.
    Philippine marines killed in fighting with militants

    Philippine marines killed in fighting with militants

    The government had earlier said that the unrest had left 20 civilians, 134 militants and 39 government troops dead. Reuters news agency earlier quoted the USA embassy in Manila as verifying the presence of U.S. forces.
    More unsettled weather for much of this week

    More unsettled weather for much of this week

    Tuesday , it will be sunny with a high near 81, the weather service said, and an east northeast wind of 8 to 10 miles per hour . Southeast winds will stay between 10 to 15 miles per hour , becoming south around 5 miles per hour after midnight.


Most liked

Shady developers are turning Apple's app subscriptions into giant scams
But at number 10 he spotted an app: "Mobile protection:Clean & Security VPN", spelled exactly as shown here. The "malware scanning" app Lin spotted that aggressively pushes users to a $99.99 weekly subscription.

Even North Korea Is Criticizing Trump Pulling Out Of The Paris Accord
A Cambodian official has said US President Donald Trump's decision to leave the Paris Climate Agreement is "unethical" and "irresponsible".

'Amazing' Nadal better than ever, says Wawrinka
He broke Wawrinka multiple times and made short work of him, dropping only a single game over the course of the set . It will always be in my heart. "For sure he's playing the best he's ever played , not only here", Wawrinka said.

Israel to Build Biggest Settlement in 25 Years in the West Bank
Sears released a statement Wednesday saying that they removed their "Free Palestine" shirts from its online marketplace . The Palestinian population of the city is much larger today than it was in 1967.

Puerto Ricans vote on statehood question
The government has spent millions of dollars on this campaign hoping that statehood wins, but even if it does, the U.S. DOJ to certify the plebiscite, Congress is likely to ignore the outcome of this vote - much as it did in 2012.

SDF Lower Islamic State Flag in Recaptured Town West of Raqqa
Many have described harrowing journeys as they fled Raqa city, with IS fighters targeting them as they tried to escape. Al-Meshleb was the first neighbourhood in Raqa city entered by SDF fighters .

Ruth Davidson warns Theresa May to change course on Brexit
Ms Davidson has been lauded after helping boost the number of Tory seats to 13 north of the border up from one. Northern Ireland is the only part of the British Isles where same-sex marriage is still illegal.

Unseeded Ostapenko faces Halep in French Open final
It quickly improved, however, and she mostly cruised through to the quarterfinals before her comeback against Svitolina. Bacsinszky, who recorded five aces in the loss, broke through in the seventh game en route to claiming the second set.

Nordstrom stock soars on news that department store could go private
Insiders own 7.03% of the company's stock. (NYSE: JWN ) were released by: Nasdaq.com and their article: " Nordstrom Inc ". On September 30 analysts at Guggenheim Securities started covering JWN by announcing an initial rating of "Buy".

Mother fears woman accused of leak will be made an example
Authorities are looking at two laptops, a tablet and four cellphones seized from Winner's home as well as spiral-bound notebooks. Trump's presidency. "This is a 25-year-old girl who served her country with admiration and distinction", Davis said.

Monster 12m wave crashes into cars after breaching defences in Cape Town
Four people have died , at least 150 properties have been destroyed and up to 10,000 people have been evacuated. One woman took to Twitter to say an elderly woman was stranded on a hilltop after fleeing her burning home.

Apple unveils 'HomePod' speaker, first new product in years
Google, meanwhile, previewed new speaker features such as hands-free phone calling during its software conference last month. Apple said the HomePod uses an algorithm that analyzes music nonstop and tunes low frequencies to avoid distortions.

Apple Adds iMac Pro as Other Macs Get Performance Upgrades
The rest of the Mac line will also be getting the Kaby Lake processor up to1.3 GHz Core i7 with Turbo Boost up to 3.6 GHz. Alongside the Mac hardware upgrades, Apple also is discussing software updates to both at its conference this week.

Clinton Says Trump's 'Covfefe' Tweet Was A Message To Russia
And now that Clinton is casting blame upon her own national party for her loss, that's only going to exacerbate things. Give Clinton (or one of her lackeys) credit for this comeback, a play on Trump's mysterious new pet word.

Emotions run high at One Love Manchester benefit concert
Robbie Williams led the thousands inside the venue in a chorus of: " Manchester , we're strong, we're strong, we're strong". After all, the performance was being live-streamed across the world so will.i.am could have been addressing London.