Over the last 12 months, the CPI increased 4.2 percent the most since April 2023.
The BLS reports the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5 percent on a seasonally adjusted basis in May, after rising 0.6 percent in April.
Over the last 12 months, the all items index increased 4.2 percent before seasonal adjustment.
The BLS rounds to 1 decimal point. I show 2 decimal places
CPI Month-Over-Month
- All Items: 0.47 percent
- All Items Excluding Food and Energy: 0.21 percent
- Food and Beverage: 0.15 percent
- Shelter: 0.32 percent
- Owners’ Equivalent Rent: 0.30
- Rent of Primary Residence: 0.36
- Medical Care Services: 0.53 percent
- Medical Care Commodities: -0.71 percent
- Energy: 3.88 percent
- Gasoline: 7.04 percent
- Food at Home: 0.06 percent
- Food Away from Home: 0.30
This is structurally broad based. Medical care services has more weight in the upcoming PCE report, the Fed’s preferred measure of inflation.
CPI Month-Over-Month Energy, Gasoline, Utilities
Energy, Gasoline, Utilities and Fuel Month-Over-Month
- Energy: 3.88 percent
- Gasoline: 7.04 percent
- Utilities and Fuel: 0.63
These increases are on top of last month’s huge leaps.
The bright spot, looking ahead, is gasoline prices will take a big dive. But that will not help core inflation.
Five Measures of Inflation
Five Measures of Inflation Year-Over-Year
- CPI : 4.25 percent – Bottom April 2025 at 2.31 percent
- Core CPI: 2.85 percent – Bottom February 2026 at 2.46 percent
- CPI Rent: 2.92 percent – Bottom March 2026 at 2.56 percent
- PCE: 3.77 percent – Bottom September 2024 at 2.26 percent
- Core PCE: 3.29 percent – Bottom April 2025 at 2.61 percent
PCE numbers are as of April 2026, CPI as of May 2026. The May PCE numbers are due June 25.
CPI and PCE Year-Over-Year Percent Change
3.8 percent is the highest year-over-year inflation since 4.9 percent in April of 2023.
CPI Year-Over-Year Percent Change Major Categories
Small Price to Pay
This is a small price to pay if you focus on the mission.
Q: What’s the mission?
A: Our mission is to return the strait to where it was before we started this war.
The mission is going spectacularly because Iran has no cards.
Truth Social: The Iranians don’t seem to realize they have no cards, other than a short term extortion of the World by using International Waterways. The only reason they are alive today is to negotiate! President DONALD J. TRUMP
I’m sure glad for that. Imagine if Iran had cards.
Baptism of Fire Coming Up
This CPI report was just in time for Kevin Warsh’s first FOMC meeting as Fed Chair on June 17.
Trump expects Warsh to deliver a rate cut. I believe the Fed bias will be shift to tighten from neutral.
Warsh’s first press conference rates to be a real hoot.
Related Posts
May 13, 2026: Producer Price Index PPI Surges 1.4 Percent in April, Fed Behind the Curve?
The PPI numbers exceeded the highest estimate of every economist surveyed.
June 9, 2026: Small Business Hiring Plans Are the Lowest in Six Years
The NFIB Small Business Optimism Index declines again.
Key Findings
- The Employment Index remained essentially flat in May, registering 100.3 in May after measuring 100.4 in April. This is the third consecutive month in which the Index has declined. The current reading is below the 2025 average of 101.2 but slightly above the historical average of 100.0.
- In May, job openings and hiring plans fell notably to the lowest levels in six years. Twenty-nine percent (seasonally adjusted) of all owners reported job openings they could not fill in the current period, down 5 points from April and marking the lowest level since May 2020.
- A seasonally adjusted net 9% of owners plan to create new jobs in the next three months, down 4 points from April, also marking the lowest level since May 2020.
- In May, reports of both actual and planned price increases rose significantly. The net percent of owners raising average selling prices rose 6 points from April to a net 36% (seasonally adjusted), marking the highest reading since March 2023. A net 34% (seasonally adjusted) plan to increase prices, up 7 points from April and marking the highest reading since July 2022.
- Eighteen percent of business owners cited inflation as their single most important business problem,up 2 points from April and marking the highest reading since December 2024. Inflation ranks as the second top problem.
Does it make any sense that crude oil prices are going down?
Of course not, because in effect we are living in the “Matrix”.
If it makes no sense whatsover to you, you might want to think about why that is instead of living in the Matrix, lol.
I think I was right and now I’m pretty sure I am. Strategic move against China first and foremost. China plays real good chess, so I see all the ways this can (and may) play out.
This is another “just before Covid” pivotal moment, guys!
We all have a “fight or flight” moment, but pay attention to your surroundings if you are in survival mode. It might make a difference in how you view world trade, actually. It’s actually pretty deep. It does have a “twist” though…
The chess game goes on, lol. Those who play good chess may feel the same about this moment.
I’m guessing it’s a reaction to Trump stating they snuck 22 oil tankers through the strait without Iran knowing.
its coming https://oilprice.com/Energy/Energy-General/The-Countdown-to-a-Major-Oil-Price-Surge-Has-Begun.html
In the real World — Food and Fuel costs are way higher–While the Government just blunders.
So Worry and You won’t be Happy—- As things are probably going to get worse.
Well…well…well…. who coined the phrase below?
“It’s Trump turtles all the way down and inflation all the way up!”
and guess where we are….but as bad as things are now, they will get worse…guaranteed.
The CNBC talking heads were suggesting the Fed move from a fixed 2% inflation target to a “floating” target of 3 to 5 percent. Lol. 3 to 5 percent? WTF?
And by now for those of you with functioning brains, the whole “got exit strategy” should start crystalizing in your mind. Better hurry, those other places to go are starting to slam the door just like America is on everyone else.
Oh and I read somewhere that team republicans plan on cutting social security, medicare and medicaid after the midterms. I guess there is some good news for those that aren’t socialist leeches.
https://fixvx.com/Acyn/status/2064741127249690894?s=20
“No I love it, I love the inflation!”
You couldn’t ask for better material if Democrats were writing his words for him. But hey, no stinking dirty immigrants right?
Think Trump voters will learn anything from this?
Does the pope poop in the woods?
The Golden Age continues to get more golden.
Fits well with the trope that Trumpstien is ShitMidas, and he’s got his stubby little hands all over everything.
World War 3 is an afterthought at this point.
Just when you thought it couldn’t get any worse. The Fed is caught now in the Bermuda Triangle of economic problems.
And this is before the full effect of the Hormuz crises feeds through.
Lets see how FED manages to spin this. Personally I am expecting a minimum of 50 basis point rise in FED & all other central bank rate by the end of year.