Vacation! It's June, and many families are packing their bags and hitting the road.
And, the cost of driving during this month is the cheapest it's been in over a decade (June 15, Lincoln Journal Star):
Gas prices at lowest June levels since 2005
Gasoline prices are correlated with crude oil prices, and on June 16, "oil prices remain near a 2017 low."
In turn, sliding energy prices are a big contributor to the May dip in the Consumer Price Index for All Urban Consumers.
Read this excerpt from a June 14 Seeking Alpha article titled, "U.S. Inflation Turned to Deflation In May, Dropping 0.1%":
The Consumer Price Index for All Urban Consumers decreased 0.1% in May on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported. Over the last 12 months, 'headline' inflation rose 1.9%.
The May number is significant for a couple of reasons: 1) the consensus estimate was for 0.0% inflation, so this is a downside miss, and 2) 12-month inflation has now dipped below 2.0% for the first time in six months.
The BLS noted that a 2.7% decrease in the energy index was the main contributor to the monthly fall. The cost of gasoline fell 6.2% in the month, and fuel oil prices fell 6.4%. ...
Core inflation, which removes food and energy from the equation, was up 0.1% in May and rose 1.7% over the last 12 months. Year-over-year core inflation has now fallen below 2.0% for two consecutive months. Inflation is waning in mid 2017 ... .
You can read the entire article by following the link below:https://seekingalpha.com/article/4081350-u-s-inflation-turned-deflation-may-dropping-0_1-percent