The US Consumer Price Index (CPI) soared in May to 4.2% year-on-year, the highest level since April 2023 and in line with market forecasts, which predicted a continuation of an upward trend driven by rising energy costs due to the war in Iran. Energy prices rose by 3.9% over the month, slightly above the 3.8% recorded in April and following a 10.9% increase in March. Inflation in energy products accounted for more than 60% of the monthly rise in the overall figure.
Core inflation, which excludes the volatile energy and food indices, rose to 2.9%, one-tenth of a percentage point higher than in April, according to figures released on Wednesday by the Bureau of Labour Statistics at the Department of Labour.
With these figures, US inflation has officially returned to above 4%, comfortably exceeding twice the Fed’s target.
