Why were prices rising in May 2023?

As of May 2023, the Basket Index for a US family of 4 sits at 121.4 — meaning the cost of a standard household basket has risen 3.2% versus a year ago and is up 0.08% from the previous month.

Most of the move comes from rent of primary residence, electricity (residential), bread (white loaf) and ground beef (100% beef). Together these items account for roughly 67% of the year-over-year basket cost change.

Offsetting the increases: gasoline (regular unleaded) (-20.0%), eggs (grade a, large) (-6.9%), milk (whole, fortified) (-3.9%) are cheaper than a year ago.

Inflation is rarely caused by one thing. Energy prices feed into food production and shipping; rent moves with housing supply and interest rates; and grocery prices respond to supply shocks, weather, and demand patterns. Basket Index does not claim causality — it tracks the prices households actually face, and lets you see which categories are pulling the basket up.

• Rent of Primary Residence: +8.7% YoY, ~44% of basket move.
• Electricity (Residential): +7.1% YoY, ~17% of basket move.
• Bread (White Loaf): +21.5% YoY, ~4% of basket move.