The Consumer Price Index jumped 4.2% year-over-year in May, the highest reading since May 2023 and the fastest pace of inflation in three years. The number, published June 10 by the US Bureau of Labor Statistics, landed exactly where economists expected it would.
The headline vs. what actually matters
On a monthly basis, CPI rose 0.5%, matching consensus forecasts. Energy prices were the main culprit, supercharged by ongoing tensions in the Middle East that have kept oil markets on edge.
Core CPI, which strips out food and energy, came in at 2.9% year-over-year, the highest since September 2025. The monthly core increase was just 0.2%, below the 0.3% that economists had penciled in.
Crypto’s non-reaction says a lot
