May Consumer Prices

According to the Bureau of Labor Statistics, May saw a slight .1% rise in the Consumer Price Index.  On a year over year basis the headline CPI now registers a negative -1.0% decline.  As with other similar indicators (like the recent PPI report), the outlook for inflation is slight, if now actually non-existent.  At its core the CPI also rose just .1%, although it remains positive year over year, increasing by 1.8%.  Since this number is considered by many to be a point of particular focus by the Federal Reserve, it may take on added significance, although the Fed’s recent announcement at the conclusion of the Open Market Committee’s meeting didn’t suggest they found it particularly troublesome.  Further, since we remain within the Fed’s purported target range for inflation of somewhere between +1% to +2%, little impact is expected to be felt from this month’s data.