According to the US Bureau of Labor Statistics, the Consumer Price Index (CPI) increased by 0.5% in May 2026, following a 0.6% rise in April. Over the past twelve months, inflation reached 4.2%, up from 3.8% in April. The increase was largely driven by higher energy prices, which rose 3.9% during the month and accounted for more than half of the CPI increase. Gasoline prices were a major contributor, rising 7.0% in May.
Food prices increased modestly by 0.2%, while shelter costs rose 0.3%. Excluding food and energy, core inflation increased by 0.2% in May and 2.9% over the past year, indicating that underlying inflation remained relatively stable. Several categories, including communication, airline fares, medical care, and recreation, recorded price increases, while motor vehicle insurance and new vehicle prices declined.
The report indicates that the rise in inflation was driven primarily by energy costs rather than widespread price increases across the economy. While housing costs continue to put upward pressure on prices, core inflation remained moderate, suggesting that broader inflationary pressures were relatively contained in May.
