US inflation accelerates in May, headline CPI moves above 4pc threshold

10th Jun 2026 12:53

(Sharecast News) - US inflation accelerated in May, according to the Bureau of Labor Statistics, with headline CPI rising 0.5% on the month and 4.2% over the year.

The monthly increase eased slightly from April's 0.6% gain, while the annual rate picked up from 3.8% and moved above the 4% threshold for the first time since May 2023. Consensus estimates had annual CPI rising 0.5% on the month and 4.2% year-on-year.

Energy remained the main driver, with the index up 3.9% on the month and accounting for more than 60% of the overall rise. Shelter costs increased 0.3%, while food prices edged 0.2% higher, with modest gains across both food at home and food away from home.

Core CPI, which strips out volatile food and energy prices, rose 0.2% in May.

Increases were recorded in communication, airline fares, medical care, personal care and recreation, while motor vehicle insurance, household furnishings and new vehicles declined.

Over the year, core CPI was up 2.9%, compared with 2.8% in April, while energy prices surged 23.5% year-on-year.

Reporting by Iain Gilbert at Sharecast.com