Prices Jumped 5% in May From Year Earlier, Faster Than Expected

The Consumer Price Index showed the strongest year-over-year reading since 2008, and a core index popped the most since 1992.

Consumer prices rose at the fastest annual rate since 2008 in May, a bigger jump than economists had expected and one that is sure to keep inflation at the center of political and economic debate in Washington. The Consumer Price Index surged 5 percent in May from a year prior, the Labor Department said on Thursday. Economists had expected an increase of 4.7 percent. The price index rose 0.6 percent from April to May, compared with forecasts for a 0.5 percent gain. An index excluding volatile food and energy costs rose 3.8 percent from a year earlier, the briskest pace since June 1992.