U.S. Inflation Rose Slightly Last Month As Grocery Prices Ticked Higher

While the increase isn’t huge, it shows that inflation is still affecting everyday life for many Americans, especially at the grocery store. Prices for food bought at home rose by 0.3% in May. Over the past year, grocery prices have gone up by 2.2%.

Grocery Costs Are Still a Concern

Items like fruits, vegetables, and breakfast cereals all got more expensive last month. Even frozen food prices went up. While the price of eggs dropped by about 2.7% in May, they’re still around 40% higher than they were a year ago. Many families are noticing that their regular grocery bills are rising slowly but steadily.

Core Inflation Holds Steady

When we remove food and energy (which often change a lot), the “core” inflation rate stayed the same for the third month in a row at 2.8% compared to last year. Core inflation also rose by 0.1% in May, which is slightly lower than April’s 0.2% rise. Economists use this number to see long-term inflation trends and whether prices are becoming more stable.

Other Prices Are Falling

The good news is that prices for some things, like gasoline, rent, and travel services, have gone down. These drops helped keep overall inflation from rising more sharply. Still, the increase in grocery prices is hitting consumers the hardest, as food is something no one can skip.

Will the Fed Cut Interest Rates?

The Federal Reserve wants inflation to stay around 2%, but since it’s a bit higher right now, they’re being cautious. Many were hoping that the Fed might lower interest rates this summer, but with prices still dragging up, especially for essentials like food, that decision may be delayed.

Quick Look at the Numbers (May 2025):

Overall inflation: +0.1% from last month

Annual inflation: 2.4%

Grocery prices: +0.3% in May; +2.2% over the past year

Core inflation: 2.8% (year-over-year), same as April

However, inflation isn’t rising rapidly; it’s still a worry for many Americans, especially when it comes to food. Families continue to feel the pressure of higher prices at the checkout counter, and the Federal Reserve is keeping a close eye on it before making any changes to interest rates in 2025.