US Inflation Returns Above 4% as Fed's Challenge Becomes a Global Concern

US Consumer Price Inflation Reaches 4 Percent in May, Raising Hopes of Fed Rate Hike

The US Bureau of Labor Statistics released data on June 10, showing that consumer price inflation crossed 4 percent in May for the first time in three years. The surge in prices was driven overwhelmingly by energy costs linked to the conflict with Iran, with the energy index rising 3.9 percent in May and accounting for over 60 percent of the monthly all-items increase.

According to the BLS, the Consumer Price Index (CPI) rose 0.5 percent month-on-month on a seasonally adjusted basis and 4.2 percent over the past 12 months, the highest annual rate since April 2023. Core CPI, which excludes food and energy, rose 0.2 percent on the month and 2.9 percent year-on-year, the highest since September 2025.