Inflation, a major concern for consumers and policymakers alike, showed signs of easing in May according to multiple reports released last week. The Consumer Price Index (CPI), which measures the change in prices for a basket of goods and services, remained unchanged from April and rose 3.3% year-over-year.
The decrease in headline inflation was driven by a decline in energy prices, specifically gasoline prices, which fell 6.1% month-over-month and were down 20.6% from the same period last year.
Core inflation, which excludes food and energy costs, rose 0.2% on a monthly basis and was up 3.4% year-over-year.
Despite the slight decrease in inflation, economic anxiety remains high with nearly three in five Americans mistakenly believing the US is in recession according to a Harris poll conducted exclusively for The Guardian last month.
Unemployment is near historic lows, but surveys indicate President Biden is struggling to convince voters that the economy has improved under his watch.
The Federal Reserve, which raised interest rates sharply in 2022 and 2023 in a bid to cool the US economy, will announce its latest decision on interest rates this week. The central bank is widely expected to keep rates between 5.25% and 5.5%, a two-decade high.
Anxiety over the state of the economy continues to linger, with consumers facing rising costs for shelter, transportation, and other essentials.
The latest CPI data comes as economists debate whether inflation has peaked or if it will continue to rise. Some experts believe that inflation could remain high due to supply chain disruptions and labor shortages.
It is important to note that while these reports provide valuable insights into the current state of the economy, they should be taken with a grain of salt. As a neutral journalist, I urge readers to be skeptical of all information provided and to seek out diverse sources for a more complete understanding of the issues at hand.
