According to the latest data from the Bureau of Labor Statistics released on May 13, 2026, the Consumer Price Index (CPI) rose 3.4% year-over-year in April, slightly above the 3.3% forecast. Core CPI, excluding food and energy, increased 3.6%. Despite this, consumer spending rose 0.3% in April, driven by services and durable goods, as reported by the Commerce Department on May 15.
Investor sentiment remained positive, with the S&P 500 index reaching a record high of 5,850 on May 14, up 1.2% for the week. The Federal Reserve, in its May 7 meeting minutes, indicated it would hold interest rates steady at 5.25%-5.50% until inflation shows sustained progress toward its 2% target.
Gasoline prices averaged $3.85 per gallon nationally on May 17, up 8 cents from a month earlier, according to AAA. Grocery prices rose 2.1% year-over-year, with eggs and dairy seeing the largest increases. However, wage growth of 4.1% over the past year has helped offset some of the inflation pressure for many households.
