US inflation hits new three-year high amid energy price surge
Summary
Consumer inflation in the United States rose by 0.5 percent in May, reaching the fastest pace in three years. This increase is mainly due to higher energy prices, especially petroleum, which rose sharply because of tensions with Iran and global oil market issues.Key Facts
- Inflation increased by 0.5% in May after a 0.6% rise in April.
- Inflation is now 4.2% higher than it was one year ago.
- Energy prices jumped 3.9% in May, following a 3.8% increase in April.
- Gasoline prices rose 7% in May and are over 40% higher than last year.
- The average price for a gallon of petrol is $4.15, up from $2.98 in late February.
- Shelter costs increased by 0.3%, and food prices rose by 0.3%, but food inflation is slowing down.
- Real wages declined by 0.1% in May, the second month in a row with no wage growth.
- The US Federal Reserve is likely to keep interest rates steady in June but may raise them later this year to fight inflation.
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