Deflationary Trend Continues As May Inflation Fell -0.1%

Summary

  • Price declines reflected the effects of COVID-19 shutdowns, with gas prices falling, along with prices of auto insurance, air travel, apparel and lodging away from home.
  • Price increases hit more necessary items: Food, shelter, medical care and, alcohol.
  • How long with this deflationary trend continue? If gasoline prices increase sharply in summer months, inflation could hold nearly flat.

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.

Read my full analysis on SeekingAlpha.com

Advertisement

About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
This entry was posted in Investing in TIPS. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s