US Supercore inflation soared to 5% in May, highest since April 2023, despite core CPI decline.

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US Supercore inflation increased 5.0% year-over-year in May, its highest level since April 2023.

Supercore inflation is a key metric the Fed follows which includes core services inflation less shelter.

Over the last 8 months, it has seen a significant increase from ~3.8% in October.

This is despite core CPI inflation declining to 3.4% year-over-year from 3.6% in April and below estimates of 3.5%.

Overall, inflation has been above 3% for 38 straight months, the longest streak since the 1990s’ when it lasted for 54 months.

The fight against inflation is far from over.

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