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The consumer price index climbed 4.2% from a year earlier, the most since early 2023.
US consumer price index rose 4.2% year-over-year in May, the highest since early 2023.
KEY POINTS
Core CPI increased by only 0.2% month-over-month, less than the 0.3% forecast.
Transportation services, health insurance, and new vehicles prices declined despite overall inflation rise.
Disruptions to fertilizer markets may drive grocery bills higher later even if conflict resolves.
Federal Reserve officials may keep interest-rate hike discussions active due to persistent price pressures.
US inflation accelerated again in May as the Iran war pushed up energy prices, though a gauge of underlying inflation rose by less than forecast.
The consumer price index climbed 4.2% from a year earlier, the most since early 2023, according to Bureau of Labor Statistics data out Wednesday. The core CPI, which excludes food and energy, increased 0.2% from April and 2.9% from a year earlier.
MetricActualEstimateCPI MoM+0.5%+0.5%Core CPI MoM+0.2%+0.3%CPI YoY+4.2%+4.2%Core CPI YoY+2.9%+2.9%
Despite an energy-fueled jump in the overall CPI, the details of the report painted a milder picture: Transportation services, health insurance and new vehicles prices fell. That represents cold comfort for consumers as economists see further price increases on the horizon, which could keep a possible interest-rate increase this year in the conversation among Federal Reserve officials.
Even if there's a resolution to the conflict soon, higher costs are likely to persist until oil output normalizes. Beyond the initial energy shock, disruptions to fertilizer markets may eventually lead to higher grocery bills, while rising transportation costs could boost prices for all kinds of consumer goods.
S&P 500 futures pared losses after the release.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)