US annual inflation rate rose to 4.2% in May, its highest level since April 2023, driven by rising oil prices amid the US-Iran trade war, according to data from the Bureau of Labor Statistics.
This data is expected to influence the Federal Reserve’s monetary policy path, as markets await the next meeting scheduled for June 16-17.
According to the data released today, energy prices in the US rose by 23.5% year-on-year (YoY) in May, while food prices increased by approximately 3.1%.
CPI – May 2026 (%)
Index
Forecasts
April
May
Change
Annual Core CPI
2.9
2.8
2.9
+0.1
Monthly Core CPI
0.3
0.4
0.2
(0.2)
Annual Headline CPI
4.2
3.8
4.2
+0.4
Monthly Headline CPI
0.5
0.6
0.5
(0.1)
Importance: The data reflects worsening inflationary pressures in the US, which may prompt the Federal Reserve to keep interest rates high for a longer period given the flexibility of the labor market.
US annual inflation rate rose to 4.2% in May, its highest level since April 2023, driven by rising oil prices amid the US-Iran trade war, according to data from the Bureau of Labor Statistics.
This data is expected to influence the Federal Reserve’s monetary policy path, as markets await the next meeting scheduled for June 16-17.
According to the data released today, energy prices in the US rose by 23.5% year-on-year (YoY) in May, while food prices increased by approximately 3.1%.
CPI – May 2026 (%)
Index
Forecasts
April
May
Change
Annual Core CPI
2.9
2.8
2.9
+0.1
Monthly Core CPI
0.3
0.4
0.2
(0.2)
Annual Headline CPI
4.2
3.8
4.2
+0.4
Monthly Headline CPI
0.5
0.6
0.5
(0.1)
Importance: The data reflects worsening inflationary pressures in the US, which may prompt the Federal Reserve to keep interest rates high for a longer period given the flexibility of the labor market.
