CPI inflation report: Which prices changed the most last month
Labor Department reports 139,000 jobs added in May
In May, job growth in the U.S. economy slowed compared to the previous two months. This slowdown reflects employer concerns coming from uncertainty surrounding future trade, tax, and monetary policies. LiveNOW’s Andrew Craft is speaking to Brit Morse from Fortune Magazine as the unemployment rate of 4.2% remained unchanged from the past two months.
U.S. inflation picked up a bit in May, but the effects may not be felt as the higher prices for groceries and some imported goods were largely offset by cheaper gas, travel services and rents.
CPI inflation report
By the numbers:
Consumer prices increased 2.4% in May compared with a year ago, according to a Labor Department report released Wednesday.
That is up from a 2.3% yearly increase in April.
Dig deeper:
The figures show that core inflation remains stubbornly above the Federal Reserve’s 2% target, which makes it less likely that the central bank will cut its key short-term interest rate. Trump has repeatedly urged the central bank to reduce borrowing costs.
RELATED: Inflation rose slightly in May, offset by cheaper gas and travel fares
Which prices increased?
Big picture view:
The cost of groceries, toys and games, and large appliances rose, which could reflect the impact of President Donald Trump's tariffs.
Which prices decreased?
Big picture view:
The price of new and used cars, clothes, air fares, and hotel rooms all dropped from April to May.
Gas prices
FILE - A Valero gas pump station is seen on October 22, 2024 in Austin, Texas. (Photo by Brandon Bell/Getty Images)
By the numbers:
Gas prices dropped 2.6% last month.
Grocery prices
By the numbers:
Grocery prices rose 0.3% from April to May, and are up 2.2% in the past year.
Fruits and vegetables, breakfast cereals, and frozen foods all rose last month:
- Fresh fruits and vegetables +0.2%
- Breakfast cereals +2%
- Frozen foods +0.6%
- Ice cream +2.4%
Some grocery prices that decreased last month included eggs, by 2.7% – though the kitchen staple are still more than 40% more expensive than a year ago.
Other grocery items that got cheaper:
- Meats, poultry and fish -0.1%
- Milk -1.1%
- Frozen vegetables -1.3%
- Condiments -2%
RELATED: Which states spend the most—and least—on fast food: How to cut your own costs
Labor Department cutbacks affecting CPI
Meanwhile:
The Labor Department said earlier this month that it won’t be collecting as much data in the future for CPI reports because of a staff shortage stemming from the Trump administration’s government hiring freeze.
Dig deeper:
Economists have expressed concern about the cutback, and have said less data could make inflation and economy reports less accurate and more volatile.
Big picture view:
The inflation data plays a huge role in the U.S. economy.
It is used to calculate the annual cost of living adjustments for tens of millions of Social Security recipients and it helps determine the interest rate paid in about $2 trillion of inflation-adjusted Treasury bonds.
Trump’s tariffs
Big picture view:
The data showed that Trump's tariffs haven't yet pushed overall prices higher, suggesting many companies may be absorbing the cost of the higher duties for now.
Why you should care:
Companies ranging from Walmart to Lululemon to J.M. Smucker have said they will raise prices in the coming months to offset the impact of tariffs.
RELATED: These companies expect to raise their prices due to Trump tariffs
The Source: Information in this article was taken from government data released Wednesday, June 11, 2025, as part of May’s Consumer Price Index. This story was reported from Detroit.