In the 12 months ending in May, consumer prices rose 8.6%, which was the fastest pace in four decades, and caused a surge in gas prices.
The average price for a gallon of gas in the US was $5 on Thursday.
The Labor Department reported on Friday that overall prices rose 1% from April, much higher than the economists were expecting.
According to the release, the jump is the largest 12-month increase since December 1981 and comes after prices in April fell on a monthly basis.
The government said the increase was due to a 4% jump in shelter, food and gas prices.
"So much for the idea that inflation has peaked, it's nearly ubiquitous," said Bankrate Chief Financial analyst Greg McBride in an email.
Shelter prices rose at the fastest pace in 31 years and food prices climbed at the highest rate in more than four decades as core inflation remained at 0.6% in May.
The S&P 500 reversed early gains and fell below Thursday's closing level in pre-market trading after the worse-than- expected report.
Used car prices, which had been the ray of hope for easing price pressures, jumped 1.8% for the month of May.
The Federal Reserve is working to combat the surge in inflation caused by rising energy prices, and stocks have struggled in recent months. The benchmark S&P 500 has fallen this year. Over the past month, oil prices have surged more than 15% with demand expected to spike this summer, adding to supply concerns spurred by intensifying sanctions against Russia.
The pace of rate hikes after the June and July meetings seems to be a longshot. Hopes for improvement have been dashed again as inflation rears its ugly head.
Gas prices have hit an all-time national high.
The inflation was worse than expected.
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