Inflation rose in May, with the Consumer Price Index increasing 0.5% for the month and 4.2% over the past year, driven largely by higher energy prices.

Core inflation, which excludes food and energy, rose more modestly at 0.2% monthly and 2.9% annually, suggesting underlying price pressures remain softer.

Energy costs surged 3.9% in May and are up sharply over the past year, while food and shelter saw smaller but steady increases.

Economists say rising prices are squeezing consumers, even as some categories like vehicles and transportation services showed mixed or declining trends, CNBC has reported.

The report has increased attention on the Federal Reserve, which is widely expected to keep interest rates steady while monitoring inflation risks tied to energy markets and geopolitical tensions.