US inflation broadens and strengthens, reinforcing case for further rate hikes

Inflation continues to move up, with gains spreading more than they had earlier in the year, as it is likely to linger in the wake of resilient demand, writes KPMG US Chief Economist Diane Swonk.

The United States' (US) consumer price index (CPI) rose by 0.5 percent in May, after jumping 0.6 percent in April. The most recent move pushed the overall index up 4.2 from a year ago, its hottest pace since Spring 2023. The three-month annualized rate, which better tracks momentum, has risen to 8.2 percent in May from 7.3 percent in April. That is the hottest three-month pace since September 2022 and is moving in the wrong direction for the Federal Reserve. Prices at the gas pump rose 7....

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Authors: Diane Swonk

Published Date: 12 June 2026