A key economic indicator the Fed keeps an eye on was up 6.3% in May over the same period last year, which left it at the same level as April.
Statistics released Thursday by the Commerce Department showed inflation is still putting economic pressure on Americans.
The report also indicated consumer spending rose at just a 0.2% rate from April to May. The Associated Press reported that consumer spending is “beginning to weaken” in the face of such high inflation. But it’s still helping fuel inflation itself, the AP reported, especially as demand grows for services ranging from airline tickets and hotel rooms to restaurant meals and new and used autos.
On a month-to-month basis, prices rose 0.6% from April to May, up from the 0.2% increase from March to April.
Nearly 80% of adults say the economy is poor, a new AP survey from The Associated Press-NORC Center for Public Affairs Research. All of that comes as unemployment remains at historic lows, hovering the last few months at 3.6%. Two weeks ago, in an effort to fight inflation, the Fed raised its key rate by three-quarters of a point — its largest hike in nearly three decades — and signaled more large rate increases to come.