The annual inflation rate in the US rose for the first time in four months to 2.4% in May 2025 from April's 2.3%, the lowest since 2021, but came in below expectations of 2.5%.
Prices rose more for food (2.9% vs 2.8% in April), transportation services (2.8% vs 2.5%), used cars and trucks (1.8% vs 1.5%) and new vehicles (0.4% vs 0.3%).
On the other hand, inflation fell slightly for shelter (3.9% vs 4%).
Meanwhile, energy cost declined 3.5%, following a 3.7% fall in April.
Prices for gasoline (-12% vs -11.8%) and fuel oil (-8.6% vs -9.6%) continued to decrease while the rise for natural gas prices remained elevated (15.3% vs 15.7%).
On a monthly basis, the CPI edged up 0.1%, below 0.2% in the previous month and forecasts of 0.2%.
In addition, annual core inflation which excludes volatile food and energy prices, remained at 2.8%, holding at 2021-lows, while expectations were pointing to a rise to 2.9%.
The monthly core CPI also edged up 0.1%, below 0.2% in April and expectations of 0.3%.
source: U.S. Bureau of Labor Statistics
