Inflation
U.S. Inflation - CPI Breakdown
Consumer Price Index data by category. Updated monthly from the Bureau of Labor Statistics. Last release: May 2026.
Headline CPI (YoY)
3.4%
▲ Above Fed's 2% target
Core CPI (ex-food & energy)
3.6%
→ Stubborn - driven by shelter
Core PCE (Fed's preferred)
2.7%
→ Closer to target, still above
Monthly Change (MoM)
+0.3%
→ Steady pace, no acceleration
CPI by Category - Year-over-Year % Change
Shelter
5.5%
▲ +0.1
Motor Vehicles
4.6%
▲ +0.3
Food Away From Home
4.1%
→ 0.0
Food at Home
2.4%
▼ -0.2
Medical Care
2.2%
▼ -0.1
Headline CPI
3.4%
→ 0.0
Apparel
1.0%
▼ -0.4
Energy
-1.4%
▼ Falling
Used Cars
-6.9%
▼ Falling
Source: Bureau of Labor Statistics, May 2026 CPI release. Bar width proportional to relative inflation rate.
Core vs. Headline - What's the Difference?
Headline CPI
3.4%
Core CPI (ex food/energy)
3.6%
Core PCE (Fed target)
2.7%
Fed Target
2.0%
Why Core PCE matters more: The Fed targets Core PCE - not CPI - because it excludes volatile food and energy prices, and adjusts for consumer substitution. At 2.7%, Core PCE is 70 basis points above target. That's why the Fed is holding rates at 5.25%.
Headline CPI - 7-Month Trend (YoY %)
NovDecJanFebMarAprMay ▸
Nov: 3.7%Dec: 3.9%Jan: 3.7%Feb: 3.4%Mar: 3.2%Apr: 3.3%May: 3.4%
Trend: plateau at 3.2-3.4% range. Disinflation stalled - "last mile" toward 2% is proving slow.
Distance from Fed's 2% Target