US consumer prices rise 4.2%, highest in over 3 years

The US Bureau of Labor Statistics said Wednesday that the consumer price index rose 4.2 percent in May from a year earlier.

That is the highest reading since April 2023, when the index climbed 4.9 percent — a gap of three years and one month.

The figure matched the consensus forecast compiled by Dow Jones. On a monthly basis, prices rose 0.5 percent, also in line with expectations.

Core CPI, which strips out volatile energy and food prices, rose 2.9 percent year-on-year and 0.2 percent from the previous month. The annual gain matched forecasts, while the monthly increase came in slightly below the projected 0.3 percent.