The Consumer Price Index for All Urban Consumers Takes Monthly Dip

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: