economy
Consumer prices rose 4.2% annually in May, highest in three years
The consumer price index was expected to show a 4.2% gain from a year ago, according to the Dow Jones consensus estimate.
TL;DR
- The consumer price index rose 0.5% in May, with the annual inflation rate at 4.2%.
- This marks the highest annual inflation rate since April 2023 and the first time it has exceeded 4% in three years.
- Core CPI, excluding food and energy, accelerated 0.2% monthly and 2.9% annually, below forecasts.
- Energy prices saw a significant jump of 3.9% for the month, contributing 23.5% over 12 months.
- Food prices increased by 0.2%, and shelter costs rose 0.3%.
- Transportation services decreased by 0.6%, and new vehicle costs declined 0.3%.
- Markets are closely watching the Federal Reserve's response to the inflation surge, with expectations of interest rates remaining unchanged in the near term.
- Concerns exist about the potential spread of oil price increases to other sectors of the economy due to ongoing hostilities with Iran.