Inflation rises significantly in May, up to 8.6% year over year

(WASHINGTON) — Inflation reaccelerated in May, rising at the highest level seen in four decades, according to data released by the federal government on Friday.

The consumer price index, or CPI, stood at 8.6% year over year in May, a significant increase from 8.3% the month prior, according to the U.S. Bureau of Labor Statistics. That is the largest 12-month increase since the period ending December 1981.

On a monthly basis, the consumer price index rose 1% in May, far outpacing the 0.3% rise seen in April, according to the bureau.

Energy, food and housing costs contributed to the surge in prices. The new data arrives a day after the nationwide average price for a gallon of gas reached $5, according to GasBuddy.

The core consumer price index, which strips out food and energy costs, rose 0.6% on a monthly basis in May, the same increase that it saw in April, according to the Bureau of Labor Statistics.