The news: US inflation ticked up 0.1% last month and 2.4% YoY, a softer read than many economists expected but one that kept the pressure on consumers already dealing with a higher cost of living.

Core CPI, which excludes food and energy prices, rose 2.8% YoY, the same as April, and was up 0.1% MoM. Food prices rose 0.3% MoM, while egg prices dropped 2.7%. The cost of shelter gained 0.3%, and gasoline prices dropped 2.6%. Apparel prices fell 0.4%.

Under pressure: The May inflation report does little to change the fact that many consumers are financially stretched, which is becoming evident in how they shop and spend. More consumers are willing to use buy now, pay later (BNPL) services for essential goods, which could be a sign of growing financial strain.

• Twenty-five percent of BNPL users are financing grocery purchases, while 41% have used the payment method for clothing and shoes, per an April LendingTree survey.
• 41% of BNPL users said they paid late on a loan in the past year, up from 34% a year ago.
• Almost half of consumers (49%) admit they make more impulse buys because of BNPL, and 46% spend more than they normally would, according to a separate April study from PartnerCentric.com.