WASHINGTON — U.S. consumer prices rose at their fastest annual pace in three years in May, with inflation reaching 4.2% compared with a year earlier, according to data released on Wednesday by the Bureau of Labor Statistics. The increase marked a rise from the 3.8% annual rate recorded in April.
The Consumer Price Index (CPI), a broad measure of the prices paid by consumers for goods and services, increased 0.5% from April to May, matching economists’ expectations, according to Reuters and other published reports. The annual inflation rate was the highest since April 2023.
According to the reports, higher energy costs were a major contributor to the increase in inflation. Rising gasoline prices linked to disruptions in global energy markets helped drive the overall gain in consumer prices. Reuters reported that gasoline prices increased sharply during the month, adding pressure to household budgets.
Core CPI, which excludes the often-volatile food and energy categories, rose 2.9% from a year earlier and increased 0.2% from April, according to the published data. Analysts cited in multiple reports said the core measure indicated that broader inflation pressures remained more moderate than the headline figure.
Reuters reported that the inflation reading matched economists’ forecasts. The news agency said consumer prices “rose at their fastest annual pace in three years,” reflecting the impact of higher energy costs.
The latest inflation data comes as policymakers and financial markets continue to monitor price trends and their implications for monetary policy. Reports published Wednesday noted that inflation remains above the Federal Reserve’s long-term target of 2%.
As of Wednesday, the Bureau of Labor Statistics’ May inflation report showed annual CPI inflation at 4.2%, while core inflation stood at 2.9%, according to the released figures.
