CPI Rises on Increased Rental Costs

- The Consumer Price Index for May rose .4% versus estimates of a .4% gain and a .6% rise in April.
- The CPI Ex Food & Energy for May rose .3% versus estimates of a .2% gain and a .3% rise in April.

BOTTOM LINE: Rising gasoline costs and rents propelled consumer prices higher last month, Bloomberg reported. Gasoline prices rose 4.9% for the month. Food prices rose .1%. Rental prices rose .6%, the most since 1990. However, this is a byproduct of a weakening housing market. I continue to believe inflation fears have peaked for the year as unit labor costs remain subdued, economic growth slows and commodity prices continue to fall.