The Labor Department's latest report reveals that U.S. consumer prices remained unchanged in May, as a significant reduction in gasoline prices counterbalanced ongoing increases in shelter costs. This development took analysts by surprise, given that economists had projected a slight uptick of 0.1 percent after a 0.3 percent rise in April.
Excluding the volatile categories of food and energy, core consumer prices experienced a modest growth of 0.2 percent in May, following a 0.3 percent rise in the previous month. Economists had anticipated core prices to continue their 0.3 percent upward trend.
Additionally, the annual growth rate of consumer prices decelerated to 3.3 percent in May, down from 3.4 percent in April, contrary to expectations that it would remain steady. Similarly, the annual rate of core consumer price growth decreased to 3.4 percent in May from 3.6 percent in April, with forecasts predicting a more modest decline to 3.5 percent.
