The May inflation report, just released by the Bureau of Labor Statistics, offers an unnerving glimpse at the volatile U.S. economy, with prices rising dramatically in some sectors and falling dramatically in others.
Overall, the deflationary trend continues. The BLS said the Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1% in May on a seasonally adjusted basis. Over the last 12 months, "headline inflation" increased 0.1%. Just four months ago, U.S. inflation was running at 2.3%.
May's decline of 0.1% followed a 0.8% decline in prices in April, and both numbers were