U.S. consumer inflation rose to 4.2% in May, the Bureau of Labor Statistics reported Wednesday, matching economists’ expectations and marking the highest 12-month reading since April 2023.
The Consumer Price Index increased 4.2% over the 12 months through May, up from 3.8% in April, according to the Labor Department report. Energy prices were a major driver of the monthly increase. The energy index rose 3.9% in May, and gasoline prices increased 8.6% before seasonal adjustment. Shelter costs rose 0.3% during the month, while the food index increased 0.2%. Former Dallas Fed President Richard Fisher said the data underscored mounting strain on households. “It’s not a good number. I think the consumer is under tremendous pressure,” Fisher told CNBC. Fisher added that, in his view, the Federal Reserve should leave interest rates unchanged for now to allow more time to assess how the economy is responding. The May report extended a run of higher year-over-year inflation readings since February, a period in which elevated energy costs have contributed to renewed price pressure. Separately, oil markets have been volatile amid heightened U.S.-Iran tensions. The Daily Wire reported that Brent crude futures moved to around $93 a barrel after President Donald Trump posted criticism of Iran on social media.
