U.S. CPI Rose 4.2% in May; Several Major Categories Declined
Energy prices drove the increase, with gasoline up 40.5% from a year earlier. Core inflation rose to 2.9%.
indiatoday.intoday.inU.S. Labor Department reported. Energy prices accounted for more than 60% of the monthly increase.
7%. 5%. 8% in April.
2% headline increase. 4% annual rate in January. The Labor Department attributed the rise to higher energy costs linked to the closure of the Strait of Hormuz.
Prices for some goods fell for the first time in 14 months. New vehicles, household furniture, and prescription drugs posted declines, according to EY-Parthenon chief economist Gregory Daco. Fuel prices have eased slightly in June, the CBS News gas and oil price tracker shows.
U.S. economist at Oxford Economics, said May could represent the 2026 peak for headline inflation. "With gas prices down sharply so far in June, May could mark the peak for headline CPI, although inflation will be slow to decline," she said in a research note.
Three-quarters of Americans said their incomes are not keeping up with inflation, according to a recent CBS News poll. Elizabeth Renter, senior economist at NerdWallet, said consumers feel powerless to mitigate the pain. The Federal Reserve's next policy meeting is scheduled for June 17.
CME Group's FedWatch tool shows a 96% probability that officials will leave the benchmark rate unchanged. 7% in 2027 if the current inflation path holds, MarketWatch reported.
