In May, the Consumer Price Index for All Urban Consumers rose 1.0%, seasonally adjusted, and rose 8.6% over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.6% in May; up 6.0% over the year.
Estimates were for an 8.3% rate.
Markets immediately initiated a sell-off, with the Dow dropping over 400 points and the NASDAQ falling over 200 points.
The energy index rose 3.9% month-on-month in May, with the gasoline index rising 4.1%. Compared to the prior year, energy prices in May were up 34.6%, the most since September 2005.
