Inflation rose again in May as elevated energy prices squeeze consumers

A Mornings with Maria panel analyzes the markets, the impact from the conflict in Iran. investing in companies that the government has a stake in.

This story about the May 2026 CPI inflation report is developing and will be updated with more details.

Inflation ticked higherin May as American consumers continued to face elevated fuel prices amid the Iran war's impact on the energy market. across the economy.

The Bureau of Labor Statistics (BLS) said on Wednesday that theconsumer price index (CPI)– a broad measure of how much everyday goods like gasoline, groceries. rent cost – rose 0.5% from a month ago and is 4.2% higher than a year ago. The annual figure is the highest since April 2023.

Both the 0.5% monthly increase. the 4.2% rise from a year ago were in line with the expectations of economists polled by LSEG.

So-called core prices, which exclude volatile measurements of gasoline. food to better assess price growth trends, were up 0.2% on a monthly basis and 2.9% from a year ago. The monthly figure was slightly cooler than the expected rise of 0.3%. while the annual core figure was in line with economists' predictions.

INFLATION IS SQUEEZING AMERICAN CONSUMERS AND THE FED'S LATEST REPORT SHOWS IT'S GETTING WORSE

High inflation has created severe financial pressures in recent years for most U.S. households, which are forced to pay more for everyday necessities like food and rent. Price hikes are particularly difficult for lower-income Americans, because they tend to spend more of their already-stretched paychecks on necessities. have less flexibility to save.

Energy pricesrose 3.9% in May amid the Iran war's disruption of Middle Eastern oil supplies. with prices up 23.5% in the last year. The BLS noted that the energy index accounted for over 60% of the overall CPI increase in May.

Gasoline pricesincreased 7% on a monthly basis in May and are up 40.5% compared with a year ago. Electricity prices rose 0.6% last month and are up 5.9% from a year ago. Utility gas service prices fell 0.5% in May and are up 3% year over year.

Gas prices are up a little more than 40% from a year ago in May. the BLS report noted.(Ariana Drehsler/Bloomberg via Getty Images)

Food prices were up 0.2% in May and are 3.1% higher than a year ago. The food at home index was up 0.1% for the month and 2.7% compared with last year. The food away from home index rose 0.3% on a monthly basis and 3.5% year over year.

Futures for the benchmark S&P 500 index were down about 0.5% following the release of the inflation report ahead of the market open.

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