Hot May inflation reading reinforces Fed's path to hold interest rates next week
Key takeaways
- Hot May inflation reading reinforces Fed's path to hold interest rates next week Jennifer Schonberger · Senior Reporter Wed, June 10, 2026 at 8:04 PM GMT+7 2 min read.
- The Consumer Price Index rose 4.2% in May, in line with expectations, compared with 3.8% in April.
- Stripping out volatile energy and food prices, "core" inflation ticked up to 2.9% from 2.8% in April, also in line with expectations.
Hot May inflation reading reinforces Fed's path to hold interest rates next week Jennifer Schonberger · Senior Reporter Wed, June 10, 2026 at 8:04 PM GMT+7 2 min read. A hot inflation reading for May released Wednesday morning reinforces that the Federal Reserve will maintain interest rates next week. The rates will likely remain on hold until there s evidence that inflation is receding.
The Consumer Price Index rose 4.2% in May, in line with expectations, compared with 3.8% in April. The rise was again driven mostly by energy prices due to the conflict in the Middle East, which accounted for 60% of the rise in inflation. Food and shelter prices also pushed up inflation last month.
Stripping out volatile energy and food prices, "core" inflation ticked up to 2.9% from 2.8% in April, also in line with expectations. Month over month, core inflation rose 0.2%, below expectations for 0.3% and down from 0.4% in April.