May consumer prices rose at annual rate of 4.2%, highest in three years
June 10 (UPI) -- Consumer prices for the year ending in May rose by 4.2%, the fastest rate of inflation in three years, the Bureau of Labor Statistics reported Wednesday.
A 3.9% increase in the index for energy for the month bolstered the rapid acceleration of inflation. Energy's index rose by 3.8% in April and 10.9% in March, after the United States launched the Iran war.
For the month, the consumer price index increased at a seasonally adjusted 0.5% rate.
The increase in the energy index accounted for 60% of the monthly all-items increase, the bureau said.
The cost of shelter also increased, up 0.3% for the month. Food rose by 0.2% and the food at home index increased 0.1%.
May's annual rate of inflation was a high mark for the past three years and it was also the first time in that span that the rate of inflation surpassed 4%. The acceleration was in line with the Dow Jones consensus estimate.
Core inflation, the consumer price index minus volatile food and energy, rose by 0.2% in May and 2.9% for the year.
The Federal Reserve closely monitors core inflation to guide its monetary policy. The Fed has maintained elevated interest rates in an effort to tame high inflation, aiming for a 2% rate. The Fed is now under new leadership with Kevin Warsh, President Donald Trump's choice to lead the Fed, succeeding Jerome Powell, who was also a Trump pick.
The Federal Open Market Committee will release its next interest rate decision on June 17.
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This story was originally published June 10, 2026 at 6:57 AM.