News
10/06/26
US inflation accelerates to 3-year high in May
Houston, 10 June (Argus) — US inflation quickened to an annual 4.2pc in May, a
three-year high, led by gains in energy prompted by the Mideast Gulf war. The
consumer price index (CPI) rose from 3.8pc in April, according to the Bureau of
Labor Statistics (BLS). Analysts surveyed by Trading Economics expected a median
gain of 4.2pc. "May could mark the peak for headline CPI, although inflation
will be slow to decline, keeping the Fed on prolonged hold for most of this
year," Oxford Economics said in a note, citing recent declines in gasoline
prices. So-called core inflation, which strips out volatile food and energy,
rose by 2.9pc in May following a gain of 2.8pc the prior month, the BLS said.
The energy index rose by 23.5pc in May from a year prior, following a gain of
17.9pc in April. Immediately after the report, Fed funds futures markets gave
98.2pc odds Fed policymakers will hold the target rate unchanged next week at
its next policy meeting, and a nearly 69pc probability the Fed will hike its
target rate by at least a quarter point by the end of the year. The gasoline
index rose by 40.5pc in May from the year prior, compared with 28.4pc in April,
the BLS said. Fuel oil rose by 58.9pc in May compared with a 54.3pc gain the
prior month. Utility gas service rose by 3pc in May, unchanged from the prior
month. Electricity rose by 5.9pc in May, slowing from 6.1pc in April. Food
increased by 3.1pc in May, slowing from 3.2pc in April. Fruits and vegetables
rose by 6.1pc and meats, poultry and fish and eggs rose by 1.8pc in May. New
vehicles increased by 0.2pc in May, unchanged from the prior month. Costs of
used cars and vehicles fell by 2pc in May, following a 2.7pc decline in April.
Shelter rose by 3.4pc in May, slowing from a 3.3pc gain the prior month.
Transportation services rose by 4.1pc compared with a 4.3pc gain the prior
month. Airline fares rose by 26.7pc in May following a 20.7pc gain in April.
Seasonally adjusted, CPI rose by a monthly 0.5pc in May, slowing from a 0.6pc
gain in April and a 0.9pc gain in March. By Bob Willis Send comments and request
more information at feedback@argusmedia.com Copyright © 2026. Argus Media group
. All rights reserved.
