Meltdown 101: Consumer Price Index, by the Numbers

One benefit of the recession: The cost of living barely increased in May, the government said, particularly for those who don't drive.

Chart shows percent change in the Consumer Price Index from prior month, seasonally adjusted;

(AP)

Gas was one of the few areas where prices increased last month, as the economic slump kept a lid on inflation. Prices at the pump rose a seasonally adjusted 3.1 percent, the government said.

Overall, the consumer price index increased 0.1 percent in May, after no change in April. Prices fell by 1.3 percent in the year ending in May, the steepest annual drop since April 1950.

Consumers are spending less, making it difficult for companies to raise prices. And with unemployment at a 25-year high and factories operating at record low levels, the economy has a lot of spare capacity. That means companies could ramp up production in the event of a recovery without having to spend a lot more on labor or equipment — spending that might normally lead to inflation.

The price of oil, though, rose to an eight-month high near $73 a barrel last week, though it has since fallen a bit and closed at $71.03 Wednesday.

That has pushed up gas prices for 50 straight days, to a national average of $2.679 a gallon, according to auto club AAA.

Prices have increased in other areas, too: Rents ticked up by 0.1 percent in May, the government said, while services that have remained strong through the recession — namely, health and education — also rose.

But most costs fell: Clothing and food prices both dropped by 0.2 percent, personal computers and related equipment fell by 1.6 percent, and tobacco dropped by 0.3 percent — after two months of steep increases connected to a hike in cigarette taxes.

Here are some other interesting details in the consumer price report, by the numbers.

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INFLATION OR DEFLATION?

+0.1 percent: May change in the Consumer Price Index

-1.3 percent: The change in CPI during the year that ended May 31, the steepest annual decrease since 1950