A modest increase in consumer prices during May kept inflation below expectations, according to a government report released Wednesday, June 11, as lower gasoline and other energy costs helped offset gains in food and shelter.
The headline monthly inflation figure showed a 0.1% increase in U.S. consumer prices for May, following a 0.2% rise in April, according to the Labor Department’s Consumer Price Index (CPI) report. The widely expected consensus had projected a 0.2% monthly increase.
The Consumer Price Index (CPI), a key inflation gauge, measures what American consumers pay for a wide range of everyday goods and services, from eggs to energy.
Food prices overall rose 0.3% in May, reversing April’s 0.1% decline. Grocery store prices also increased 0.3% after falling 0.4% the month before, while restaurant prices climbed 0.3% following three straight months of 0.4% gains. Notably, egg prices dropped again – down 2.7% – after their prior 12.7% monthly tumble, though they remained 41.5% higher than a year ago.
Over the past year, food prices rose 2.9%, rising from 2.8% in April. Grocery prices increased 2.2%, compared to 2% the month prior, while dining-out costs increased 3.8%, slightly below April’s 3.9% pace.
In other sectors, gasoline prices declined 2.6% in May, following a 0.1% dip in April. Year over year, gas prices were down 12%, extending April’s 11.8% annual drop.
The broader energy index, which includes gasoline, electricity, and fuel oil, fell 1% in May after rising 0.7% in April. Over the past year, energy prices dropped 3.5%, adding to previous 3.7% decline.
Excluding volatile food and energy components, the rate of core consumer prices rose 0.1% in May, down from the previous 0.2% increase and two-tenths of a percentage point below expectations.
Shelter costs rose 0.3% in May, matching April’s increase and marking the 61st consecutive monthly gain. Over the past year, shelter prices climbed 3.9%, slightly below April’s 4% pace.
Annual shelter inflation has steadily eased from recent highs. For comparison, 12-month increases were:
- April 2025: 4.0%
- March 2025: 4.0%
- February 2025: 4.2%
- January 2025: 4.4%
- December 2024: 4.6%
- November 2024: 4.7%
- October 2024: 4.9%
- September 2024: 4.9%
- August 2024: 5.2%
- July 2024: 5.1%
- June 2024: 5.2%
- May 2024: 5.4%
- April 2024: 5.5%
- March 2024: 5.7%
- February 2024: 5.7%
- January 2024: 6.0%
- December 2023: 6.2%
- November 2023: 6.5%
- October 2023: 6.7%
- September 2023: 7.2%
- August 2023: 7.3%
- July 2023: 7.7%
- June 2023: 7.8%
- May 2023: 8.0%
- April 2023: 8.1%
- March 2023: 8.2% – the highest since June 1982
The shelter component of the CPI includes prices for items such as apartment rents, owners’ equivalent rent – a measure of what homeowners would pay to rent or earn from renting their property – lodging away from home like hotels and motels, and housing at schools.
In other key pricing categories:
- Clothing prices fell 0.4% in May, following a 0.2% decline in April, and were 0.9% lower than a year earlier.
- New vehicle prices declined 0.3% after being flat in April; year over year, they rose 0.4%.
- Used car and truck prices dropped 0.5% for the second month in a row, though they were up 1.8% from a year earlier.
- Airline fares fell 2.7% in May, following a 2.8% drop in April, and were down 7.3% over the past 12 months.
For the headline annual rate, inflation rose 2.4% over the 12 months ending in May, up from 2.3% in April and one tenth of a percentage point above many forecasts.
For a broader perspective and a look further back, the inflation rate peaked at 9.1% during the 12-month period ending in June 2022. This was the fastest rate of inflation since November 1981. Additionally, until March 2023, inflation rates had remained at or above 6% for 17 consecutive months.
For a third straight month and one tenth below expectations, core inflation rose 2.8% over the year through May, remaining the lowest since March 2021. This core, "all items less food and energy" index, is one of the benchmark inflation rates monitored by the Federal Open Market Committee (FOMC) to guide the central bank in setting its key interest rate.
In September 2022, the annual core inflation rate at 6.6% was the highest since August 1982. Many economists consider the core reading as a better predictor for future inflation.
The following table of key inflation figures is for the last seven months through May, as published by the U.S. Labor Department’s Bureau of Labor Statistics (www.bls.gov/cpi) on June 11, 2025. To index the data each month, the BLS monitors the prices of about 80,000 consumer goods and services from around the nation. All monthly and annual pricing changes are in percentages.
November 2024 to May 2025 Consumer Prices – Gains & Losses in Percent
(Seasonally Adjusted from Prior Month and Unadjusted 12-Month)
| Oct 2024 | Nov 2024 | Dec 2024 | Jan 2025 | Feb 2025 | Mar 2025 | Apr 2025 | 12 Month | |
| All items | 0.3 | 0.4 | 0.5 | 0.2 | -0.1 | 0.2 | 0.1 | 2.4 |
| Food | 0.3 | 0.3 | 0.4 | 0.2 | 0.4 | -0.1 | 0.3 | 2.9 |
| Food at home | 0.4 | 0.3 | 0.5 | 0.0 | 0.5 | -0.4 | 0.3 | 2.2 |
| Food away from home | 0.3 | 0.3 | 0.2 | 0.4 | 0.4 | 0.4 | 0.3 | 3.8 |
| Energy | 0.1 | 2.4 | 1.1 | 0.2 | -2.4 | 0.7 | -1.0 | -3.5 |
| Energy commodities | 0.2 | 3.9 | 1.9 | -0.9 | -6.1 | -0.2 | -2.4 | -11.6 |
| Gasoline (all types) | 0.3 | 4.0 | 1.8 | -1.0 | -6.3 | -0.1 | -2.6 | -12.0 |
| Fuel oil | -1.4 | 2.1 | 6.2 | 0.8 | -4.2 | -1.3 | 0.9 | -8.6 |
| Energy services | -0.1 | 0.8 | 0.3 | 1.4 | 1.6 | 1.5 | 0.4 | 6.8 |
| Electricity | -0.2 | 0.2 | 0.0 | 1.0 | 0.9 | 0.8 | 0.9 | 4.5 |
| Utility (piped) gas service | 0.5 | 2.8 | 1.8 | 2.5 | 3.6 | 3.7 | -1.0 | 15.3 |
| All items less food, energy | 0.3 | 0.2 | 0.4 | 0.2 | 0.1 | 0.2 | 0.1 | 2.8 |
| Commodities less food, energy | 0.2 | 0.0 | 0.3 | 0.2 | -0.1 | 0.1 | 0.0 | 0.3 |
| New vehicles | 0.5 | 0.4 | 0.0 | -0.1 | 0.1 | 0.0 | -0.3 | 0.4 |
| Used cars and trucks | 1.3 | 0.8 | 2.2 | 0.9 | -0.7 | -0.5 | -0.5 | 1.8 |
| Apparel | 0.1 | 0.1 | -1.4 | 0.6 | 0.4 | -0.2 | -0.4 | -0.9 |
| Medical care | -0.1 | 0.0 | 1.2 | 0.1 | -1.1 | 0.4 | 0.6 | 0.3 |
| Services less energy | 0.3 | 0.3 | 0.5 | 0.3 | 0.1 | 0.3 | 0.2 | 3.6 |
| Shelter | 0.3 | 0.3 | 0.4 | 0.3 | 0.2 | 0.3 | 0.3 | 3.9 |
| Transportation | 0.1 | 0.5 | 1.8 | -0.8 | -1.4 | 0.1 | -0.2 | 2.8 |
| Medical care | 0.3 | 0.2 | 0.0 | 0.3 | 0.5 | 0.5 | 0.2 | 3.0 |
The BLS releases inflation data around the middle of the month, covering consumer prices surveyed up to the previous month. The Consumer Price Index (CPI) for June and the latest annual period will be made public on July 15, 2025.
The CPI data is also used to calculate inflation rates and power this site’s U.S. Inflation Calculator, which displays the cumulative inflation and the change in the buying power of the U.S. dollar over time.
