Latest CPI Figures Released
The Bureau of Labor Statistics reported that the consumer price index rose 0.5 percent in May from the prior month and stood 4.2 percent higher than a year earlier. This annual pace marks the highest reading since April 2023. Both the monthly and yearly increases aligned with forecasts from economists surveyed by LSEG.
Core Prices Show Mixed Movement
Core prices, which strip out food and gasoline to reveal underlying trends, increased 0.2 percent on the month and 2.9 percent over the year. The monthly core gain came in slightly below the 0.3 percent rise that analysts had projected, while the annual core figure matched expectations.
Energy Costs Lead the Advance
Energy prices climbed 3.9 percent in May and are now 23.5 percent above levels from a year ago. The energy index alone accounted for more than 60 percent of the overall CPI increase during the month. Gasoline prices jumped 7 percent from April and have risen 40.5 percent year over year. Electricity costs advanced 0.6 percent in the month and stand 5.9 percent higher than last year, while utility gas service prices declined 0.5 percent monthly yet remain 3 percent above year-ago levels.
Pressure on Household Budgets
Elevated inflation continues to strain U.S. households, particularly those with lower incomes that devote larger shares of their earnings to necessities such as food, rent, and fuel. The ongoing disruption to Middle Eastern oil supplies linked to the Iran war has kept fuel prices elevated and contributed to wider price pressures across the economy.
Key Price Changes in May
- Overall CPI: +0.5 percent monthly, +4.2 percent annually
- Core CPI: +0.2 percent monthly, +2.9 percent annually
- Energy index: +3.9 percent monthly, +23.5 percent annually
- Gasoline: +7 percent monthly, +40.5 percent annually
- Electricity: +0.6 percent monthly, +5.9 percent annually
