Inflation Is Making A Comeback

The 12-month CPI is back in the spotlight, rising 4.2% for the 12 months ending in May. Consumers continue to feel the impact, particularly through higher energy and food costs. As expected, energy inflation remains elevated due to supply constraints following the closure of the Strait of Hormuz. Rising energy prices often have a broader effect on inflation, as higher transportation and production costs are passed on to consumers through the goods and services they purchase. Food prices also increased significantly, with food inflation reaching 3.1%. This rate exceeded the inflation recorded across the combined basket of all other items excluding food and energy.

Source: U.S. Bureau of Labor Statistics, The Business Week Graphic

This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.