U.S. Inflation Is Highest in 13 Years as Prices Surge 5%

Consumer prices rose rapidly in May, reflecting a surge in demand and shortages of labor and materials.

U.S. consumer prices continued to climb strongly in May, surging 5% from a year ago to reach the highest annual inflation rate in nearly 13 years.

The Labor Department said May’s increase in consumer inflation was the largest since August 2008. The jump followed a 4.2% rise for the year ended in April. The core-price index, which excludes the often-volatile categories of food and energy, rose 3.8% in May from a year before—the largest increase for...