Inflation rose 5% in the 12 months ending in May, the Bureau of Labor Statistics reported Thursday. It was a faster pace than economists had predicted and the biggest jump since August 2008.
Excluding food and energy prices, which tend to be more volatile, inflation stood at 3.8% over this 12-month period. This is the largest increase in core inflation since June 1992.
In May alone, prices rose 0.6% on a seasonally adjusted basis, slightly less than in April. Core inflation, excluding food and energy prices, stood at 0.7%, compared to 0.9% in April.
Once again, prices for used cars and trucks rose sharply, rising 7.3% in May and accounting for a third of May’s overall increase. Over the past 12 months, price tags have risen 29.7% with no seasonal adjustments. New car prices also rose in May, up 1.6%.
Elsewhere, the prices of home furnishings, airline tickets and clothing increased rapidly. Home furnishings recorded its largest monthly increase since January 1976.
Americans are also continuing to return to restaurants as the economy reopens. Prices in the “take-out” category rose 0.6%, the fastest pace since September.
It’s a developing story that will be updated.