As inflation hits the highest level since 2023, Houstonians express concerns

HOUSTON, Texas (KTRK) -- The inflation report released on Wednesday shows that inflation jumped for the third consecutive month.

Prices rose 4.2% in May compared to a year earlier, according to data from the U.S. Bureau of Labor Statistics. That is the highest level in three years.

Houstonian Jennifer Herndon said the numbers in the inflation report don't paint a pretty picture.

"It's concerning," Hudson said. "I think we are all in it for the long haul and go at it day-by-day."

The report shows inflation rose at a seasonally adjusted 0.5% for the month.

"If you look at just the monthly numbers, a half a percent increase if you extrapolate that over 12 months, that puts the inflation rate at over 6%," University of San Diego Economics Professor Alan Gin, Ph.D., said.

As recently as February 2026, inflation was only a fraction of a percentage higher than the U.S. Federal Reserve's target rate of 2%, according to the data.

The War in Iran prompted the closure of the Strait of Hormuz, which is a vital waterway for oil shipments. That action sent energy prices soaring. Energy prices, which include all types of gasoline, rose 23.5% in May compared to a year earlier.

Rising fuel prices sent items that need to be transported, like groceries and supplies, higher as well.

Fruits and vegetables rose 6% from a year earlier, but dairy products decreased by around 1%, according to the data.

"It makes things difficult for households. People will have to spend more on products, and, as a result of that, they can't afford to buy as many things. So, if consumers start cutting back on their expenditures in certain areas to make up for increases in other areas, that can then weaken the overall economy," Gin said.

A steady increase in prices puts pressure on the U.S. Federal Reserve to increase interest rates as a way to lower inflation.

The U.S. Federal Reserve will hold its scheduled meetings on June 16 and 17.

It remains to be seen if any action will be taken by the Fed to dial back inflation.