WASHINGTON — U.S. consumer prices rose 4.2 percent in the 12 months through May, the highest annual inflation rate in more than three years, the Labor Department reported, as officials continued to monitor the impact of higher energy costs.
The Consumer Price Index increased 0.5 percent in May on a seasonally adjusted basis, following a 0.6 percent rise in April, according to the Bureau of Labor Statistics. The annual rate accelerated from 3.8 percent in April.
Energy prices drove much of the increase, jumping 23.5 percent over the year, with gasoline up sharply. Food prices rose 3.1 percent, while shelter costs increased 3.4 percent, the agency said.
Core inflation, which excludes volatile food and energy prices, rose 2.9 percent over the 12 months through May, up from 2.8 percent the prior month. On a monthly basis, core prices increased 0.2 percent.
The data, released on June 10, comes amid ongoing global supply disruptions linked to conflict in the Middle East. Economists and officials have pointed to elevated energy costs as a key factor pushing headline inflation higher.
Federal Reserve officials have described inflation as remaining elevated relative to the central bank's 2 percent target. In a statement following its June 17 meeting, the Federal Open Market Committee noted supply shocks contributing to price pressures in certain sectors, including energy.
"Inflation remains elevated relative to the Committee's 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy," the Fed said.
The central bank kept its key interest rate unchanged at that meeting, though nearly half of policymakers indicated they could support a rate hike later in the year if needed, according to reports on the discussions.
The acceleration marks the third consecutive monthly increase in the annual headline rate. Administration officials and economists have attributed the recent uptick primarily to external factors rather than broad domestic demand pressures.
White House and congressional officials from both parties have acknowledged the data while emphasizing different policy priorities. Some lawmakers have called for measures to address energy supply, while others focus on longer-term monetary policy responses.
The latest figures leave the trajectory of inflation uncertain in coming months as the Federal Reserve and other agencies assess incoming data. Details on potential further policy adjustments remain unclear.
