U.S. Consumer Prices Rose 4.2% Over Year Ending in May, Highest Since April 2023, as Economy Adds 172,000 Jobs
The annual inflation rate reached its highest level since April 2023. Energy costs drove more than 60% of the monthly increase.
nypost.comS. 2% for the year ending in May, the highest annual inflation rate since April 2023. The Bureau of Labor Statistics reported the increase on June 10, 2026. 5% in May, marking the third consecutive monthly increase.
Energy costs accounted for more than 60% of the monthly rise. 5% monthly gain aligned with Wall Street expectations. Shelter and food costs rose slightly in May. Indexes for communication, airline fares, medical care, personal care, and recreation also increased.
Indexes for motor vehicle insurance, household furnishings and operations, and new vehicles decreased. S. added 172,000 jobs in May, according to a separate report. The jobs figure was released alongside the inflation data.
President Trump has continued to call for lower interest rates. Steve Swedberg, a finance and monetary policy analyst at the Competitive Enterprise Institute, said the data show little support for rate cuts given persistent inflation. Swedberg stated that the result is growing tension between economic indicators favoring restraint and political pressure for lower rates.
The report follows earlier tariff policies and energy market disruptions tied to restrictions on shipments through the Strait of Hormuz. 1% during the previous administration before declining.
