US consumer prices continued to soar in May, pushed higher by surging energy costs more than three months into a war with Iran, government data released Wednesday showed.
Prices rose 4.2% from May 2025 in the hottest annual reading since April 2023, and 0.5% on a monthly basis, according to the Bureau of Labor Statistics, matching economists’ expectations. The index for energy prices alone accounted for more than 60% of the increase from April, with prices rising 3.9%.
Food prices, meanwhile, rose 0.2% in May from the previous month as cheese prices fell and coffee continued its march higher.
On a “core” basis, which strips out volatile energy and food costs, prices rose 2.9% from last May and 0.2% from April. Economists had expected a monthly bump of 0.3% and a 2.9% year-over-year rise.
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As Yahoo Finance covers the rising cost of living coupled with a challenging job market, we’re looking to hear from real workers about what they earn — and whether it’s enough. Reach out to emma.ockerman@yahooinc.com to share your story.
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