May’s 4.2% annual CPI rise marks the fastest US inflation pace in three years, matching market expectations.
US consumer prices surged 4.2% year-over-year in May, the sharpest increase since September 2018. The rise reflects rebounding demand and supply chain constraints as the economy reopens.
The print matched consensus forecasts and follows April’s 4.1% gain. Core CPI, excluding food and energy, climbed 3.0%, also the highest in nearly three decades.
Markets are assessing whether the acceleration signals sustained inflation or transitory pressures as the Federal Reserve maintains accommodative policy.