The latest inflation data from the U.S. Labor Department showed consumer prices increased in May broadly in line with market expectations, indicating that price pressures remain elevated but largely predictable.
The Consumer Price Index (CPI) rose 0.5% during the month, following a 0.6% increase in April. The monthly gain matched economists’ forecasts.
On an annual basis, headline inflation accelerated to 4.2% in May from 3.8% in April, also meeting consensus estimates.
Excluding the more volatile food and energy categories, core CPI increased 0.2% in May after advancing 0.4% the previous month. Economists had anticipated a slightly stronger increase of 0.3%.
The annual core inflation rate edged up to 2.9% from 2.8% in April, in line with market expectations, suggesting underlying price pressures remain relatively contained despite the rise in headline inflation.