Inflation Jumps 4.2% In May -- Smart Strategies To Help Offset Rising Everyday Costs

Keep reading Forbes Advisor for the chance to see the answer to your question in one of our upcoming stories. Our editors also may be in touch with follow-up questions. For a third consecutive month, the inflation rate has jumped, with the current rate being 4.2% year over year, up from 3.8% in April, according to the latest Bureau of Labor Statistics (BLS) data released June 10. This is more than double the Federal Reserve's 2% inflation rate goal, and Americans are paying the price in everyday goods, such as gas and groceries. Select financial tools -- like a certificate of deposit (CD) or high-yield savings account -- can help build a savings buffer or stretch budgets to balance high inflation. Where Prices Are Jumping the Most While costs have been steadily increasing, some adjustments are more startling than others. "It's important to note that much of the latest inflation increase was driven by energy costs, especially gasoline prices", says Elisabella Ricca, personal finance and consumer analyst at TopCashback, a cash-back rebate site. Gasoline and fuel oil prices increased 40.5% and 58.9%, respectively, within 12 months, largely influenced by the Iran war. Since the Iran conflict began in late February, the national average for a gallon of regular gas hit $4.56 on May 21, a four-year record high, according to AAA data. Food is another category that has seen an increase. Costs for groceries and eating out have risen 3.1% year over year. Income vs. Inflation Americans are struggling with rising costs, with 77% reporting that their income isn't keeping up with inflation, according to a CBS News and YouGov survey. This is not new -- stagnated wage growth has been an ongoing topic for years, but it's more prevalent as everyday costs continue to rise. When choosing words to describe the U.S. economy, the top words respondents used were "uncertain" (65%) and "struggling" (63%). The survey ran from May 13 to May 15, 2026, with 2,064 U.S. respondents included. Why This Matters Consecutive months of rising inflation mean there's no relief from high costs, unless you have savings set aside or financial tools to spread out expenses. "The real problem isn't just that prices have increased; it's that inflation is headed the wrong direction for the third straight month. And I don't think this is a surprise to any household," says Evan Mills, an associate financial advisor at Scholar Financial Advising. This doesn't mean you should panic, however. "The first thing to understand is that you need to find a way for your cash to work harder. Your money should not be sitting in a checking account earning very little, if any, yield," Mills adds. These Financial Tools Can Help Mills says an interest-bearing account is a stable way to stay ahead of high prices. "You're not going to completely outrun it, but you're going to lessen the leak it has on your cash," he says. High-Yield Savings Accounts Many of the best high-yield savings accounts offer 3% to 4% APYs, with no monthly fees or minimum deposit requirements. This makes these accounts an easily accessible, affordable way to boost savings. Here are some highly rated options: * Synchrony Bank High Yield Savings: earns 3.40% with no monthly fees or minimum deposit requirement. * SoFi Checking and Savings Account: Earns Up to 3.10%¹ with no account fees and a $50 or $400² bonus for those eligible. * American Express® High Yield Savings Account: Earns 3.10%¹ with no monthly fees or minimum deposit requirement. Synchrony Bank High Yield Savings 04/21/2026. SoFi Checking and Savings Account 05/28/2026. American Express® High Yield Savings Account 05/19/2026. Multiple banks also have promotional offers to boost APYs this summer. Certificates of Deposit (CDs) Unlike a high-yield savings account, a CD earns a set rate, which means guaranteed earnings. But these accounts have less liquidity -- you can't access the deposited funds for months or years, depending on the term you agree to. If you go this route, make sure you have access to other savings buffers to avoid tapping into your CD too soon, which would forfeit some of the interest earned. Consider rates, fees and flexibility when hunting for the best CD. Here are some options to consider: * Synchrony Bank Certificates of Deposit: Earns 0.25% to 4.00%, depending on the term length you choose. * Marcus by Goldman Sachs High-Yield Certificates of Deposit: Earns 3.70% to 4.00%, dependent on term length. * Quontic Bank Certificate of Deposit: Earns 2.75% to 3.60%, depending on the term length. Synchrony Bank Certificates of Deposit 06/09/2026. Marcus by Goldman Sachs High-Yield Certificates of Deposit 05/19/2026. Quontic Bank Certificate of Deposit 04/28/2026. Bottom Line Inflation rose for the third consecutive month, and Americans are already reportedly struggling with everyday costs. The right savings vehicle can help you offset high inflation. Speak to a licensed financial advisor to help you come up with a plan if you're struggling financially. Was this article helpful? Share your feedback Send feedback to the editorial team Rate this Article ★ ★ ★ ★ ★ Please rate the article Email Please enter valid email address Comments We'd love to hear from you, please enter your comments. Invalid email address Submit This form is protected by reCAPTCHA Enterprise and the Google Privacy Policy and Terms of Service apply. Thank You for your feedback! Something went wrong. Please try again later. Find The Best Accounts Savings Accounts Checking Accounts CDs * Best IRA CD Rates * Best Jumbo CD Rates * Best No-Penalty CD Rates * Best 1-Year CD Rates * Best 3-Month CD Rates * Best 6-Month CD Rates Bank Reviews Calculators * Savings Calculator * CD Calculator * Money Market Calculator * Monthly Budget Calculator Recommended Reading * Safest Banks In The U.S. * Largest Banks In The U.S. * Easy Bank Accounts To Open * How To Switch Banks * How To Open A Bank Account