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U.S. Consumer Prices Jumped in May on Chip Shortages, Highest Inflation in 13 Years

Index up 5% with the biggest increases in used cars and trucks and rentals, where computer-chip shortages are crimping supply.

According to the Department of Labor, the increase in domestic consumer prices Americans saw last month was the highest on record since August 2008, climbing around 5 percent from a year ago. Some of the biggest jumps were in used cars and trucks, which rose 7.3 percent A computer-chip shortage is putting the squeeze on auto production, driving up the cost of new and used vehicles, as well as the price of rental cars, which are in short supply for the busy summer travel season. May monthly data also showed increases in the price of airline tickets, furniture, and clothing. These jumps seem especially high when compared to the numbers from last year, when COVID-19 lockdowns sent prices plummeting.