Consumer prices in the United States rose 4.2% in May from a year earlier, marking the highest inflation rate in three years, according to data released Wednesday by the Bureau of Labor Statistics.
The Consumer Price Index increased 0.5% for the month, matching market expectations. The report indicated that surging energy costs were the main driver behind the increase. Energy prices jumped 3.9% in May and were up 23.5% compared to a year ago.
Core inflation, which excludes food and energy, rose 0.2% during the month and 2.9% annually. The figures suggest that underlying inflation pressures remained relatively contained despite rising fuel costs.
Heather Long, chief economist at Navy Federal Credit Union, said Americans continue to face pressure from higher prices for essentials such as gasoline, food, electricity and healthcare.
According to the report, food prices rose 0.2% and shelter costs increased 0.3%. Markets expect the Federal Reserve to keep interest rates unchanged in the near term despite the inflation uptick.
Related Tweet:
Inflation accelerated in May as rising energy costs contributed to pain for consumers, though underlying pressures were less intense.
— CNBC (@CNBC) June 10, 2026
The consumer price index, a broad gauge of goods and services costs across the U.S. economy, rose at a seasonally adjusted 0.5% for the month,… pic.twitter.com/FlbFPgse1U
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TIPP Staff
