The consumer price index rose by 0.5% in May, as expected, and was up 0.2% excluding food and energy prices, below expectations for a 0.3% gain.
The year-over-year increase for overall CPI accelerated to 4.2% from 3.8% in April, the highest since April 2023, while the core measure was up 2.9% year-over-year after a 2.8% rate in the previous month, the highest since September 2025.
Food prices rose by 0.2%, while energy prices jumped by 3.9%. Gasoline prices alone were up 7%.
Owners' equivalent rents rose by 0.3% and regular rents were up 0.4%, both slower than in the previous month.
Prices of new vehicles declined by 0.3% after a 0.2% drop in the previous month and used vehicle prices rose by 0.1% after a flat reading. Apparel prices rose by 0.3% after a 0.6% gain.
The US Treasury reported a $292.65 billion budget deficit in May, smaller than the $315.65 billion deficit reported in May 2025 due to much smaller outlays that were partially offset by smaller receipts.
The Mortgage Bankers Association reported a 10.8% increase in mortgage applications in the week ended June 5 after a 2.5% decline in the previous week. Refinancing activity and new home applications both decreased despite higher mortgage rates.
Total crude oil inventories fell by 15.2 million barrels in the week ended June 5, with commercial oil inventories down 7.2 million barrels and stocks in the US Strategic Petroleum Reserve down 7.9 million barrels. Gasoline inventories and distillate inventories were both roughly unchanged last week.