According to new Labor Department data published Friday, inflation continues to rise at a fast clip despite some moderation in April.
The price of consumer goods and services has gone up 8.6% over the past year. This is the largest 12-month increase in over 30 years.
Inflation rose 1% in May, after only rising 3% in April, due to increases in the prices of shelter, gasoline and food.
In May, core inflation increased 0.6%, matching the increase in April.
The cost of everything, from food to rent, will keep rising, squeezing Americans' budgets even further. The Labor Department shows how much prices have gone up over the last year.
Since last year, the price of gas has gone up 48.7%, and just in the last month it has gone up 4.1%.
The average price for a gallon of gas in the U.S. is $4.99, according to the American Automobile Association.
In Illinois, the average price of a gallon of gas is more than six dollars. It's $5.62 in Nevada. In California, the average price of gas is $6.42 per gallon, but in Mendocino it is nearly $10 per gallon.
Many Americans rely on their cars to get to work because of the high gas prices. As the summer driving season gets into full swing, some people may want to use their cars more.
Fears of a recession are on the rise because of rising inflation. During the second quarter of this year, all of the chief financial officers who took the CNBC CFO Council survey said that a recession is unavoidable.
It isn't likely to happen until next year. A majority of the CFOs who participated in CNBC's survey said that there will be a recession in the first half of the 20th century.
The likelihood of a recession this year is low, according to a chief economist at a financial service company.
Faucher said that it gets dicier in the next two years.
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This year, Americans are putting more money into 401(k)s.
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