U.S. CPI Rose 4.2% in May, Highest Since April 2023
Energy prices drove more than 60% of the monthly increase. Economists had forecast the exact 4.2% annual rate.
marketwatch.comThe Labor Department reported that the Consumer Price Index rose 4.2% in May from a year earlier, matching economists' expectations and marking the highest annual rate since April 2023. Energy prices accounted for more than 60% of the monthly increase.
Core CPI, which excludes food and energy, increased 2.9% from a year earlier. That figure was unchanged from April. Several non-energy categories posted price declines, the first such drops in 14 months for new vehicles, household furniture and prescription drugs.
According to EY-Parthenon chief economist Gregory Daco, three-quarters of Americans said their incomes are not keeping up with inflation in a recent CBS News poll. Elizabeth Renter, senior economist at NerdWallet, said consumers are paying more for essentials and can feel powerless to mitigate the pain.
Fuel prices have eased slightly in June according to the CBS News gas and oil price tracker, though that decline is not captured in the May data. The Federal Reserve's next policy meeting is scheduled for June 17. CME Group's FedWatch tool shows a 96% probability that the central bank will hold its benchmark rate steady at that meeting.
