Economy

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US Consumer price inflation (CPI) continues to accelerate, all be it off low Covid lockdown bases. Annual CPI hit 5% in May, highest since August 2008. Biggest price increases again were energy with gasoline up 56.2% and utility gas service up 13.5%.

Inflation

Highlights

US CPI  May 2021

  • Y/Y 5.0% (exp. 4.7%, prev. 4.2%)
  • M/M 0.6% (exp. 0.5%, prev 0.8%)

United States Inflation Rate

 

  • Highest reading since August of 2008
  • Biggest price increases were recorded for gasoline (56.2%), used cars and trucks (29.7%), utility gas service (13.5%), transportation services (11.2%) and apparel (5.6%).
  • Shelter costs were up 2.2% and food also went up 2.2%.

 

US Core CPI  May 2021

  • Core Y/Y 3.8% (exp.3.5%, prev. 3.0%),
  • Core M/M 0.7% (exp. 0.5%, prev 0.9%)  

United States Core Consumer Prices

US core consumer prices exclude volatile items such as food and energy, rose 0.7 percent in April 2021, down from .09% which had been its largest monthly increase since April 1982.

Nearly all major component indexes increased in  May. Along with the index for used cars and trucks, the indexes for shelter, airline fares, recreation, motor vehicle insurance, and household furnishings and operations were among the indexes with a large impact on the overall increase

The effects of the coronavirus pandemic are weighing on prices since in last year many businesses closed and lockdowns were imposed, denting economic activity.  A jump in commodities and material costs, coupled with supply constraints, are pushing producer prices up and some companies are passing those costs to clients

US Real Earnings May 2021

  • Real avg hourly earnings -2.8% vs -3.7% y/y prior
  • Real avg weekly earnings -2.2% vs -1.4% y/y prior

 

Today OPEC issued it's Monthly Oil Market Report for June of note was it's report on the inflationary move of oil prices against currencies. 

OPEC June MOMR 21 oil inflation

Next Tuesday May PPI is due and the next major U.S. economic number to concern markets

From the Traders Community News Desk

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