The latest data from the US Consumer Price Index (CPI) shows that the overall CPI did not change in May compared to April, which surprised some economists who had previously predicted a slight 0.1% increase in CPI. However, the issue of annual inflation still exists, with the overall CPI increasing by 3.3% year-on-year. The following is a detailed analysis of the data:

May monthly CPI change:

• Overall CPI: No change (0.0%)
• Core CPI (excluding food and energy): Up 0.2%

May year-on-year CPI change (May 2024 compared to May 2023):

• Overall CPI: Up 3.3%
• Core CPI: Up 3.4%

Detailed analysis of price changes (May 2024):

• Housing costs (Up):Housing costs continue to rise, rising by 0.4% in May, marking the fourth consecutive month of growth.
• Food and beverage takeout (Up): The cost of dining out has increased, with full service restaurants (up 0.4%) and fast food options (up 0.2%) both raising prices.
• Healthcare (Up): Healthcare costs have risen again (up 0.5%), driven by prescription drugs (up 2.1%) and hospital services (up 0.5%).
• Used cars and trucks (Up): After a decline in April, second-hand car prices rebounded in May, rising by 0.6%.
• Education (Up): Education expenditure also slightly increased in May (up 0.4%).
• Gasoline (DOWN): For the first time in the past few months, gasoline prices have dropped by 3.6%.
• Air ticket prices (DOWN): Airline ticket prices have decreased for the second consecutive month, with a 3.6% decrease in May.
• New car (DOWN): The price of new cars slightly decreased by 0.5% in May.
• Other categories (DOWN): communication expenses (decrease of 0.3%), entertainment (decrease of 0.2%), clothing and household goods, etc. also showed a slight decrease.

Annual year-on-year inflation (May 2024 compared to May 2023):

Despite the overall stable CPI report in May, the annual inflation data still attracts attention. The overall inflation rate is 3.3%, with housing costs rising by 5.4%. Other significant annual increases include car insurance (up 20.3%), healthcare (up 3.1%), entertainment (up 1.3%), and personal care products (up 2.9%).

Summary:

May CPI report presented a complex picture. Although specific categories such as gasoline prices have declined, core expenditures such as housing and healthcare continue to rise. Importantly, these are average price changes, and individual experiences in inflation may vary depending on consumption habits. Investors and consumers should closely monitor future economic data to obtain the latest information on market trends.