# USMayCPIHits3YearHigh

CPI hits a 3-year high. And nobody's panicking. Should they?

The numbers are in.

May CPI: +4.2% YoY – highest since April 2023.
That's up from 3.8% in April.

The culprit? Energy prices. Jumped 3.9% month over month. Responsible for over 60% of the headline gain.

But here's the twist:
Core CPI (ex-food & energy) rose just 0.2% MoM – below expectations. YoY core sits at 2.9%.

So inflation is hot, but not broad-based. Energy is the fire. Everything else? Tamer.

What markets are pricing now:
📈 43% probability of a Fed rate hike this year – up from before the print.

And the real wildcard?
The June 17 Fed meeting will be Kevin Warsh's first rate decision as the new Chair.

No Powell. No gradual scripts. Warsh is untested in this cycle.

Energy keeps squeezing. The Fed has a new captain. And inflation refuses to fade quietly.