Consumer prices increased 0.2% (2.8% y/y) during May for the second straight month. The gain matched expectations in the Action Economics Forecast Survey. The CPI excluding food & energy rose an expected 0.2% (2.2% y/y) after a 0.1% rise.

Last month's increase was led by a 0.9% rise (11.7% y/y) in energy prices which followed a 1.4% strengthening during April. Gasoline prices increased 1.7% (21.8% y/y) after a 3.0% rise, but fuel oil costs fell 0.7% (+25.3% y/y) on the heels of a 2.7% increase. Electricity prices ticked 0.1% higher (1.0% y/y) after a 0.6% decline, but natural gas prices fell 0.6% (-0.8% y/y), off for the third consecutive month.

Goods prices excluding food & energy slipped 0.1% for the third straight month. The 0.3% y/y decline in prices, however, moderated from the 1.0% y/y drop in October. Prices for used cars & trucks fell 0.9% (-1.7% y/y), down for the fourth straight month. New vehicle prices increased 0.3% (-1.1% y/y) after declines in three of the prior four months. Recreation product prices fell 0.7% (-3.3% y/y) as prices for video & audio products dropped 0.8% for the third straight month (-12.6% y/y). Furniture & bedding costs were off 0.3% (-0.1% y/y), but appliance prices rose 0.3% (-0.1% y/y) following two months of strong increase. Medical care product prices surged 1.3% (2.7% y/y) after a slight dip, but apparel prices held steady (-1.4% y/y) following a 0.3% rise.

Services prices less energy increased 0.3% (3.0% y/y) after a 0.2% rise. Recreation services led the gain with a 0.4% rise (+1.8% y/y) which followed two months of decline. Education & communication services prices also improved 0.4% (0.7% y/y) after declining during each of the prior four months. Shelter prices rose 0.3% (3.5% y/y) for the second straight month reflecting a 0.3% increase (3.6% y/y) in rents of primary residences. The owners' equivalent rent of primary residences increased 0.3% (3.4% y/y) for the third straight month. Medical care services prices eased 0.1% (+2.3% y/y) after a 0.2% gain, but public transportation costs fell 1.2% (-2.8% y/y) led by a 1.9% drop (-6.6% y/y) in airline fares.

Food prices held steady last month (1.2% y/y) after increasing 0.3% in April. Fruit & vegetable prices eased 0.3% (-0.4% y/y) after a 1.0% jump. Meat prices declined 0.7% (+1.4% y/y). Egg prices fell 3.3%, but were up by nearly one-quarter y/y. Dairy & related product prices eased 0.1% (-0.6% y/y), after a 0.4% rise. Cereal & bakery product prices held steady (-0.2% y/y), following a 0.2% dip. Nonalchoholic beverage prices rose 0.4% (-1.3% y/y), after a 0.6% decline.

The consumer price data can be found in Haver's USECON database with additional detail in CPIDATA. The Action Economics survey figure is in the AS1REPNA database.