Consumer prices rose 4.2% in May from a year earlier, the Labor Department said Wednesday, up from 3.8% in April and the third straight increase. On a monthly basis, prices rose 0.5% last month, after big gains of 0.6% in April and 0.9% in March.
The numbers are a headache for the Federal Reserve and a political challenge for the Trump administration as midterm elections near.
Inflation had been cooling before Trump’s sweeping tariffs in April 2025 made many goods more costly. Prices surged again after the Iran war made oil and gas more expensive, potentially spreading price hikes across the economy.
Excluding the volatile food and energy categories, core prices rose 2.9% in March from a year earlier, up from 2.8% in April. On a monthly basis, core prices increased a modest 0.2%, down from a 0.4% gain in April.