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Economy in Brief
Wholesale Inventories Grow While Sales Decline
Wholesale inventories increased 0.8% month-on-month (6.9% year-over-year) during October...
U.S. Consumer Credit Usage Expands
Consumer credit outstanding increased $25.38 billion during October...
German IP Takes Surprising October Slip
Germany's industrial production slowed to a gain of only 0.1% in September then dropped by 0.5% in October...
U.S. Trade Deficit Widens to 10-Year High; Record Goods Shortfall
The U.S. trade deficit in goods and services widened for the fifth consecutive month to $55.49 billion in October...
U.S. ADP Private Sector Payroll Growth Eases
The ADP National Employment Report indicated that private nonfarm payrolls increased 179,000 during November...
by Tom Moeller June 15, 2005
The CPI-U fell 0.1% in May, the first m/m decline since last July and compared to Consensus expectations for a 0.1% rise. During the first five months of 2005 the CPI is up 4.7% at an annual rate.
Pricing power less food & energy continued modest. A 0.1% increase followed no change in April and during the first five months of this year the core CPI is up 2.4% at an annual rate. Consensus expectations had been for a 0.2% May increase.
The 0.2% increase in core goods prices recovered some of April's decline led by a 0.5% m/m gain in used car & truck prices and a 0.5% gain in medical care commodities. Apparel prices were unchanged (-0.8% y/y) following April's 0.6% decline and home furnishings & operation prices rose 0.6% (1.1% y/y) due to strength in the "other" category. New motor vehicle prices rose 0.1% (0.9% y/y).
Services price inflation eased from the low reading in April. Shelter prices were unchanged for the second consecutive month (2.4% y/y) and medical care services prices rose the same 0.3% as during April (5.0% y/y). Public transportation prices were strong for the third consecutive month though the 0.7% gain (3.5% y/y) was down from 1.7% and 1.3% during the prior two months. School tuition costs firmed 0.7% (6.7% y/y).
Energy prices fell 2.0% led by a 4.4% drop in gasoline prices which have fallen another 1.8% so far in June to an average $2.12 per gallon.
Food price inflation eased to 0.1% following the 0.7% jump in April.
The chained CPI which adjusts for shifts in the mix of consumer purchases was unchanged and less food & energy chain prices fell 0.1%.
| Consumer Price Index | May | April | Y/Y | 2004 | 2003 | 2002 |
|---|---|---|---|---|---|---|
| Total | -0.1% | 0.5% | 2.8% | 2.7% | 2.3% | 1.6% |
| Total less Food & Energy | 0.1% | 0.0% | 2.2% | 1.8% | 1.5% | 2.3% |
| Goods less Food & Energy | 0.2% | -0.1% | 0.6% | -0.9% | -2.0% | -1.1% |
| Services less Energy | 0.1% | 0.2% | 2.7% | 2.8% | 2.9% | 3.8% |
| Energy | -2.0% | 4.5% | 9.8% | 10.9% | 12.2% | -5.9% |
| Food | 0.1% | 0.7% | 2.4% | 3.4% | 2.1% | 1.8% |
| Chained CPI: Total (NSA) | 0.0% | 0.5% | 2.5% | 2.3% | 2.0% | 1.3% |
| Total less Food & Energy | -0.1% | 0.2% | 1.8% | 1.5% | 1.1% | 1.9% |
