Food, Alcohol & Tobacco: This category is anticipated to register a 2.6% inflation rate, a minor decline from 2.8% in April, reflecting slight price adjustments.
Non-Energy Industrial Goods: These goods are forecasted to have an inflation rate of 0.8% in May, down from 0.9% in April, indicating stable but low inflation in this sector.
Energy: Energy prices are projected to see a modest increase to 0.3% in May, recovering from a negative rate of -0.6% in April, suggesting a turnaround in energy cost trends.
Core Inflation Insights
Core inflation, which excludes the volatile effects of energy, food, alcohol, and tobacco, rose to 2.9% in May from 2.7% in April. This was higher than the Reuters poll projection of a flat reading at 2.7%. The increase in core CPI indicates underlying inflationary pressures beyond the more volatile sectors.