06/15/2026
Inflation moved higher in May, with energy costs playing a major role in the increase.
Consumer prices rose 4.2% from a year earlier, up from 3.8% in April. On a monthly basis, prices increased 0.5%.
Gas prices were a key driver. Higher energy costs accounted for more than 60% of the monthly increase, while gasoline prices were up sharply from a year earlier.
The impact extends beyond the pump. Higher fuel and energy costs can affect transportation, shipping, airfares, electricity, business expenses, and household budgets.
Core inflation, which excludes food and energy, rose at a more modest pace. That suggests some price pressures remain concentrated in energy-related categories, though consumers and businesses are still feeling the strain.
For households, inflation can affect everyday spending decisions. For businesses, higher costs may influence pricing, hiring, margins, and customer behavior.
Rising gas prices pushed inflation to its highest level in three years last month, a headache for the Federal Reserve and a potential political challenge for the Trump administration as midterm elections near.