Key takeaways include:

For May, growth rates improved for debit and softened for credit year over year. Debit purchases were up 6.4%, with a third of the debit growth coming from Money Services, while credit purchases were up 0.1%. Debit transactions were up 4.5% and credit transactions were up 1.8% year over year.
The Consumer Price Index (CPI-U) was unchanged in May, while the 12-month rate of inflation dropped to 3.3%. While Shelter continues to be a top contributor to inflation, the gasoline index dropped 3.6% in May. Excluding the volatile Energy and Food sectors, the core CPI index decreased 0.2% from April, putting the 12-month Core CPI index at 3.4%.
Growth in the Gasoline sector, with debit purchases up 2.4% and credit purchases up 0.3%, was mainly attributable to Service Station activities — which may include non-fuel purchases. Growth in true gasoline purchases at Automated Fuel Dispensers (AFDs) was modest, with debit AFD purchases up 0.7% and credit AFD purchases up 0.1% year over year.
The credit card delinquency rate was unchanged in May compared to April, finishing at 2.34%. Year over year, the percentage of balances delinquent was up 48 basis points from 1.86%.

What should credit unions do now?

Automative fuel (gasoline and electric charges) is a core category of non-discretionary spend. As summer travel peaks in June and July, so do fuel purchases. With travel promotions and other reminders of card benefits, credit unions can capitalize on spend opportunities within their members’ wallets.
Electric vehicles (EVs) have grown in popularity and the infrastructure for charging continues to build out. Identifying members with specific charging activities may allow for targeted communications and deeper personalization of messages in the quest for one-to-one marketing.
For credit unions offering different reward amounts assigned to different merchant groups, be sure to include EV charging, along with gas purchases, in the overall “fuel” category.

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