Inflation Rate Falls Down In May 2023 After a Long Period

By Indu Tyagi Ketan , 21 June, 2023

As per the United States Bureau of Labor Statistics, Consumer price growth fell to its lowest rate in May 2023 after a long period since March 2021. Many geopolitical and economic reasons led to the increase in inflation rates.  

Annually the price growth rate came down to 4 percent; price growth rose to 0.1 percent month-over-month. According to the U.S. Bureau of Labor Statistics, in the last 12 months, the price index has increased 4 percent before all seasonal adjustments. The data also added that the shelter index is the largest one to contribute to the monthly increase in the price of all the items, followed by the trucks and cars index. The food index reached up to 0.2 percent in May 2023, but the energy index reduced to 3.6 percent in the same period. Inflation rose during the pandemic outbreak when the demand and sales of goods declined, but specific geopolitical issues worsened, resulting in increased food and energy prices.

The survey shows that inflation has gradually lowered with the high prices coming down. The cost of services like medical and travel expenses by air are the slowest to come down. The core services also reached 4.6 percent from, an increased rate of 5.1 percent in May 2023. The rise in food prices is still intact and growing faster, with 6.7 percent overall compared to other sectors. Food at home prices rise to 5.8 percent, and food from home climbs to 8.3 percent. The consumer price index of different core categories, except food and energy, increased 5.3 percent year-over-year.