Consumer Prices Rise 4.2% Annually in May 2025, Highest Inflation Rate Since 2023
By
Ty Roush
Toasted golden, schmeared with insight. Top of the rack.
Summary
Consumer prices rose 4.2% year-over-year in May 2025, marking the highest inflation rate since April 2023 and the first time inflation has crossed the 4% threshold since May 2023. The monthly increase was 0.5%, matching economist estimates. Core CPI (excluding energy and food) rose 2.9% annually, with a monthly gain of 0.2% slightly below expectations. The energy index showed increases across gas, fuel oil, and other commodities. Inflation concerns persist amid stronger-than-expected employment data.
Key quotes
· 3 pulledConsumer prices increased 4.2% from May 2025 and 0.5% between April and May, the Bureau of Labor Statistics reported, matching consensus economist estimates, according to FactSet.
That's the first time inflation crossed the 4% annual rate since May 2023 (4%), and it's the highest rate since April 2023 (4.9%).
Core CPI, an inflation reading that excludes energy and food price increases, rose by 2.9% annually, aligning with analyst estimates even as its monthly gain of 0.2% was below estimates of 0.3%.
You might also wanna read
US inflation rises to 3.8% in April, highest since May 2023, driven by Iran war energy costs
US inflation rose to 3.8% in April, its highest level since May 2023, driven primarily by surging gasoline and grocery costs as consumers in
BBC News·29d ago
August 2025 Consumer Price Index Shows 0.4% Monthly Increase
The U.S. Bureau of Labor Statistics released the Consumer Price Index (CPI-U) data for August 2025, showing a 0.4 percent increase on a seas
bls.gov·9mo ago
U.S. Inflation Hits 3.8% in April, Reaching Three-Year High Amid Economic Disapproval
Inflation in the U.S. rose 3.8% in April, reaching its highest level since May 2023 and a three-year high, as the economic impact of Donald
Rolling Stone·29d ago
US Wholesale Inflation Hits Three-Year High in July Due to Tariff-Related Costs
US wholesale inflation surged in July, marking the highest increase in three years, driven by companies passing on higher import costs linke
bloomberg.com·10mo ago
July Producer Price Index Surges 0.9%, Exceeding Expectations
The producer price index (PPI) rose 0.9% in July, significantly exceeding the expected 0.2% increase. This unexpected rise impacted stock ma
cnbc.com·10mo ago
Grocery Prices Up 29% Since Pandemic, With No Relief in Sight
Grocery prices have increased by 29% since February 2020, marking the biggest jump in nearly three years. The price surge is driven by pande
npr.org·8mo ago