Consumer prices jumped 8.6 percent in May compared to last year as inflation holds grip on U.S. economy

The Consumer Price index, which tallies the cost of a basket of goods month to month, jumped 1 percent in May compared to the 0.3 percent increase in April — a sign inflation remains red hot.

Compared to one year ago, the index in May hit 8.6 percent, rising from the 8.3 percent year-on-year increase seen a month prior. That's the highest reading since 1981.

And the "core" index that excludes the costs of food and energy clocked in at 0.6 percent last month, compared to 0.6 percent in April.

The latest data from the Bureau of Labor Statistics (BLS) released Friday reflects a U.S. economy that is still sizzling, thanks in large part to the rising cost of gasoline and food.

Energy prices soared 34.6 percent compared with May 2021, while food prices jumped 10.1 percent over that period. That is the first increase of 10 percent or more in over 40 years, the BLS said.