US Consumer Prices Rose 4.2% in May

Consumer prices in the US rose 4.2% in May compared to a year earlier. This is a 0.4 percentage point increase from the April inflation rate of 3.8%, and a 0.5% rise compared to the previous month. The price increase was led by a surge in energy prices due to rising international oil prices.

The energy index in May increased by 3.9% year-on-year, accounting for over 60% of the total CPI rise. Energy commodity prices increased by 40.6%, with gasoline prices up 40.5% from a year ago and kerosene prices up 58.9% year-on-year.

The core consumer price index (CPI), excluding food and energy, rose 0.2% from the previous month. The year-on-year increase was 2.9%, a narrower rise than the 0.4% increase seen in April. While rising energy prices are driving overall inflation, their impact on core inflation is assessed as limited. The US Federal Reserve (Fed) will monitor future price trends to make monetary policy decisions.