United States: Inflation picks up in May from the prior month
Latest reading: Consumer prices were up 4.2% on a year-on-year basis in May, following a 3.8% increase in the previous month. May’s reading was the strongest since April 2023, more than double the Fed’s 2.0% target and in line with market expectations.
Relative to the prior month’s figures, there were higher price pressures for housing (+3.4% on a year-on-year basis vs +3.3% in April), transportation (+8.9% vs +6.9% in April) and energy (+23.0% vs +17.5% in April). In contrast, price pressures reduced for food in May (+3.1% vs +3.2% in April).
Meanwhile, core consumer prices were up 2.9% in annual terms in May, following a 2.8% increase in the previous month and in line with market expectations.
Lastly, consumer prices increased 0.47% in May in month-on-month terms, following a 0.64% rise in the previous month.