May CPI Declined 0.2 percent

According to the U.S. Bureau of Labor Statistics in May of 2010 the Consumer Price Index (CPI) for all urban consumers declined 0.2 percent on a seasonally adjusted basis. The CPI is a measure that estimates the average price of consumer goods and services purchased by households. CPIs are based on prices of food, clothing, shelter, fuels, transportation fares, as well as doctors' and dentists' services, drugs, and other goods and services that people purchase. Prices are collected each month in 87 urban areas across the country from about 4,000 housing units and approximately 25,000 service establishments. The index increased 2.0 percent over the last 12 months - before seasonal adjustment. For the second month in a row a decline in the energy index accounted for the seasonally adjusted decrease in the all items index. The index for energy decreased 2.9 percent in May and more than offset a slight increase in the index for all items less food and energy. The food index was unchanged. Although all the major energy indexes declined, the gasoline index accounted for most of the decrease. The index for all items less food and energy increased 0.1 percent in May. This meant posting a monthly increase for only the second time this year. Increases in a number of indexes including shelter, used cars and trucks, tobacco, apparel, and medical care contributed to the May rise. Overall, the CPI has increased 0.9 percent over the last 12 months. The economy is still suffering and many small to medium-sized businesses simply cannot keep up with the cost of doing business. Invoice Factoring during challenging times like these can help pay the bills. Most factoring companies will pay within 24 to 48 hours.

 

Courtesy of IFG Network.