US Consumer Price Index Rose 4.2% Year-Over-Year in May 2026
The Consumer Price Index for All Urban Consumers increased 4.2% over the 12 months ending May 2026, with a 0.5% monthly increase on a seasonally adjusted basis. Energy prices, which surged 23.5% annually, accounted for over 60% of the monthly increase, while core inflation (excluding food and energy) rose 2.9% year-over-year. The data reflects ongoing inflationary pressures, particularly in energy and shelter categories, which are key indicators for Federal Reserve policy decisions.
The U.S. Bureau of Labor Statistics reported that the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5% in May 2026 on a seasonally adjusted basis, following a 0.6% increase in April. The 12-month inflation rate reached 4.2%, up from 3.8% in the prior month, driven substantially by energy prices which rose 23.5% annually and accounted for over 60% of the monthly increase. Core inflation, measured by all items less food and energy, increased 2.9% over the year. Shelter costs rose 0.3% in May and contributed 3.4% to annual inflation. Food prices increased modestly at 0.2% monthly and 3.1% annually. Notable monthly decreases included motor vehicle insurance, household furnishings, and new vehicles, while increases appeared in communication, airline fares, and medical care.
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US Consumer Price Index up 4.2%
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