Consumer Price Index for May: Live Updates
Consumer inflation in the United States reached an annual rate of 8.6% in May, its highest level in more than four decades, as soaring energy and food prices pushed prices to the rise.
The Department of Labor said on Friday that the consumer price index rose 8.6% in May from the same month a year ago, marking its fastest pace since December 1981. It was also up from the April CPI, which was slightly lower than the previous 40. peak of the year reached in March. The CPI measures what consumers pay for goods and services.
May’s increase was led by strong price increases for energy, which rose 34.6% from a year earlier, and groceries, which jumped 11.9% over the year. Prices for used cars and trucks rose 1.8% in May from April, reversing three months of decline. Housing costs, an indicator of general inflationary pressures, accelerated on a monthly basis in May and rose 5.5% from a year ago.
High inflation is a downside to strong US growth, fueled in part by low interest rates and government stimulus measures to counter the impact of the Covid-19 pandemic. The annual inflation rate has risen sharply since the start of 2021, when the U.S. economy’s post-pandemic rebound accelerated, leading to supply disruptions and other imbalances that put upward pressure on prices for longer than expected by policy makers.