U.S. Inflation Hits 40 Year High

R&D Private Capital

Source: U.S. Bureau of Labor Statistics

U.S. headline inflation increased 8.6% for the 12 months ending May, the largest 12-month increase since the period ending December 1981.

The all items less food and energy index (Core) eased slightly from 6.2% in April to 6.0 % over the last 12 months in May.

The energy index rose 34.6% over the last year, the largest 12-month increase since the period ending September 2005. The food index increased 10.1% for the 12-months ending May, the first increase of 10% or more since the period ending March 1981.

The index for all items less food and energy rose 0.6% in May, the same increase as in April. While almost all major components increased over the month, the largest contributors were the indexes for shelter, airline fares, used cars and trucks, and new vehicles. The indexes for medical care, household furnishings and operations, recreation, and apparel also increased in May.