Inflation Continues its Upward Climb in May

The Consumer Price Index for Urban Consumers (CPI-U) increased 0.5% on a seasonally adjusted basis in May, following a 0.6% increase in April. Between May 2025 and May 2026, the CPI inflation rate increased 4.2% annually – the highest level in three years. In the energy realm, the index for energy price inflation was 3.9% in May. This follows a rise of 3.8% in April. Between May 2025 and May 2026, the CPI energy inflation rate rose 23.5% year-over-year. For comparison, the Federal Reserve’s target annual inflation rate is 2%.

And this week, the Federal Open Market Committee voted to maintain the current federal funds rate at 3.5-3.75%. The federal funds rate is the interest rate commercial banks charge to borrow from each other overnight and broadly sets borrowing and lending costs across the economy.

In the propane industry, inflation affects internal operating costs, margins, and consumer behavior. For more information, contact NPGA’s Senior Director of State Advocacy & Affairs, Jacob Peterson.