May 2020 Consumer Price Index

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The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1 percent in May on a seasonally adjusted basis after falling 0.8 percent in April, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 0.1 percent before seasonal adjustment.

Declines in the indexes for motor vehicle insurance, energy, and apparel more than offset increases in food and shelter indexes to result in the monthly decrease in the seasonally adjusted all items index. The gasoline index declined 3.5 percent in May, leading to a 1.8-percent decline in the energy index. The food index, in contrast, increased 0.7 percent in May as the index for food at home rose 1.0 percent.

The index for all items less food and energy fell 0.1 percent in May, its third consecutive monthly decline. This is the first time this index has ever declined in three consecutive months. Along with motor vehicle insurance and apparel, the indexes for airline fares and used cars and trucks declined in May. The indexes for shelter, recreation, medical care, household furnishings and operations, and new vehicles all increased.

The all items index increased 0.1 percent for the 12 months ending May. The index for all items less food and energy increased 1.2 percent over the last 12 months; this compares to a 2.4-percent increase a few months ago (the period ending February). The energy index fell 18.9 percent over the last year. The food index increased 4.0 percent over the last 12 months, with the index for food at home rising 4.8 percent.

Seasonally adjusted changes from preceding month Un- adjusted Nov. Dec. Jan. Feb. Mar. Apr. May 12-mos. 2019 2019 2020 2020 2020 2020 2020 ended May 2020

Food

The food index increased 0.7 percent in May following a 1.5-percent increase in April. The food at home index continued to rise, increasing 1.0 percent in May. However, unlike the broad increase in April, the May increase was driven mostly by a 3.7-percent rise in the index for meats, poultry, fish, and eggs. The beef index increased 10.8 percent in May, its largest ever monthly increase.

Other major grocery store food group indexes were mixed in May. The index for dairy and related products increased 1.0 percent, and the index for fruits and vegetables rose 0.5 percent. The indexes for nonalcoholic beverages and for other food at home were both unchanged in May. The index for cereals and bakery products fell 0.2 percent in May after rising 2.9 percent in April.

The index for food away from home rose 0.4 percent in May after rising 0.1 percent in April. The index for limited service meals rose 0.6 percent in May following a 0.7-percent increase in April. The full service meals index increased 0.2 percent in May after falling 0.3 percent in April.

The food at home index increased 4.8 percent over the last 12 months, with all six major grocery store food group indexes rising over that span. The index for meats, poultry, fish, and eggs rose 10.0 percent over the last year, its largest 12-month increase since the period ending May 2004. This reflects a sharp increase in the beef index, which rose 18.2 percent over the span. The index for dairy and related products increased 5.7 percent, and the index for nonalcoholic beverages rose 4.1 percent over the year. The remaining groups posted smaller increases. The index for food away from home rose 2.9 percent over the last year. The index for limited service meals increased 3.6 percent and the index for full service meals rose 2.4 percent over the last 12 months.

Energy

The energy index declined 1.8 percent in May following a 10.1-percent decline in April. The gasoline index fell 3.5 percent in May after falling 20.6 percent in April. (Before seasonal adjustment, gasoline prices fell 0.2 percent in May.) The electricity index also declined in May, falling 0.8 percent, its largest 1-month decline since May 2015. The index for natural gas, however, rose 0.8 percent in May.

The energy index fell 18.9 percent over the past 12 months as all of the major energy component indexes declined. The gasoline index decreased 33.8 percent, while the fuel oil index fell 37.5 percent. The index for electricity fell 0.2 percent over the last year, while the index for natural gas declined 0.3 percent.

All items less food and energy

The index for all items less food and energy decreased 0.1 percent in May. The index for motor vehicle insurance continued to decline, falling 8.9 percent in May after a 7.2-percent decrease in April. The apparel index also continued to decline, falling 2.3 percent in May after decreasing 4.7 percent the prior month. The index for airline fares fell 4.9 percent in May, and the index for used cars and trucks declined 0.4 percent, the same decrease as in April.

The shelter index rose 0.2 percent in May. The indexes for rent and for owners’ equivalent rent both increased 0.3 percent in May after rising 0.2 percent in April. The index for lodging away from home continued to decline, falling 1.5 percent in May. The index for recreation increased 0.9 percent in May after declining in April. The medical care index rose 0.5 percent in May following a 0.4-percent increase in April. The index for physicians’ services increased 0.7 percent and the index for hospital services rose 0.1 percent, while the index for prescription drugs declined 0.2 percent over the month.

The index for household furnishings and operations rose 0.4 percent in May. The new vehicles index increased 0.3 percent in May after being unchanged in April. The index for alcoholic beverages increased 0.8 percent in May, its largest increase since January 2012. The index for education also rose in May, increasing 0.2 percent.

The index for all items less food and energy rose 1.2 percent over the past 12 months. The shelter index rose 2.5 percent over the 12-month span, and the medical care index rose 4.9 percent. Notable indexes that declined over the past 12 months include airline fares (-28.8 percent), motor vehicle insurance (-14.3 percent), apparel (-7.9 percent), and new vehicles (-0.3 percent).

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1 percent over the last 12 months to an index level of 256.394 (1982-84=100). For the month, the index was unchanged prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) decreased 0.1 percent over the last 12 months to an index level of 249.521 (1982-84=100). For the month, the index was unchanged prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) decreased 0.2 percent over the last 12 months. For the month, the index was unchanged on a not seasonally adjusted basis. Please note that the indexes for the past 10 to 12 months are subject to revision.

Coronavirus (COVID-19) Pandemic Impact on May 2020 Consumer Price Index Data

Data collection by personal visit for the Consumer Price Index (CPI) program has been suspended since March 16, 2020. When possible, data normally collected by personal visit were collected either online or by phone. Additionally, data collection in May was affected by the temporary closing or limited operations of certain types of establishments. These factors resulted in an increase in the number of prices considered temporarily unavailable and imputed. While the CPI program attempted to collect as much data as possible, many indexes are based on smaller amounts of collected prices than usual, and a small number of indexes that are normally published were not published this month. Additional information is available at www.bls.gov/covid19/effects-of-covid-19-pandemic-on-consumer-price-index.htm