According to data released by the Bureau of Labor Statistics on Tuesday, declining petroleum prices significantly reduced consumer price increases.
The petroleum index experienced a monthly decline of 3.6% in May, as opposed to a 2.8% increase in April. In general, headline inflation remained unchanged from April, decreasing from the 0.3% monthly price increase that occurred the previous month.
The price decrease at the pump resulted from the decline in crude oil and wholesale prices last month. The most significant weekly decline of the year was recently observed in gasoline.
According to AAA data, the national average for petroleum was $3.45 per gallon on Wednesday, a decrease of approximately $0.17 from one month prior.
In April, oil prices experienced a downward trend; however, petroleum futures have recently experienced a rebound and are anticipated to increase this summer due to the demand for transportation and cooling.
Goldman Sachs analysts anticipate that Brent crude prices will increase nearly 7% from their current levels, reaching $86 per barrel.
Brent (BZ=F), the international benchmark price, was trading at just over $83 per barrel on Wednesday, while West Texas Intermediate (CL=F) was trading at just over $79 per barrel.
The aggregate energy index experienced a 2% decline in May, following a 1.1% increase in April due to the decline in gas prices. The energy prices increased by 3.7%, while the gas index increased by 2.2% annually.
In May, the petroleum oil index decreased by 0.4% month-over-month, while the electricity index remained unchanged, according to the BLS data. Over the month, the natural gas index experienced a 0.8% decline.
The price of natural gas (NG=F) has recently increased due to a recent supply surplus.
