# USMayCPIHits3YearHigh


📈 US May CPI Hits 4.2% – Highest in 3 Years. And Guess Who’s to Blame?

The Labor Department dropped the number on June 10: headline CPI rose 4.2% year over year – the hottest reading since April 2023, and a noticeable jump from April's 3.8%.

So what's driving it?

Energy prices. They spiked 3.9% month over month and accounted for more than 60% of the entire headline increase. Pump pain is real.

Now for the twist: core CPI (ex-food & energy) came in at 2.9% YoY, but the monthly gain was just 0.2% – below expectations. That suggests underlying inflation isn't running as hot as the top-line number makes it look.

Still, markets reacted. Odds of a Fed rate hike this year just climbed to about 43% on CME FedWatch.

All eyes now turn to June 17 – the first Fed rate decision under new Chair Kevin Warsh. Energy keeps the pressure on, but will the Fed blink?
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