Inflation is back in a way that makes the Federal Reserve’s job considerably harder. The Bureau of Labor Statistics released May 2026 CPI data on June 10, showing headline consumer prices rose 4.2% year-over-year, up from 3.8% in April.
That 4.2% figure is the highest annual headline inflation reading since April 2023, when CPI hit 4.9%.
The numbers behind the numbers
The headline CPI came in at 4.2% YoY, matching the consensus forecast exactly. Core CPI, which strips out food and energy, rose to 2.9% year-over-year, also matching forecasts and representing a tick higher from the previous reading of 2.8%.
Surging energy costs appear to be a primary driver behind the headline number’s acceleration.
