Summary
In May, the Federal Reserve’s preferred inflation measure rose to the highest level in three years, mainly due to higher gas prices. Consumer prices increased 4.1% compared to a year ago, which could create challenges for President Donald Trump and his party as midterm elections approach.
Key Facts
- Inflation in May rose 4.1% from a year earlier, the largest annual increase since April 2023.
- On a monthly basis, consumer prices went up 0.4% in May, the same as April and down from 0.7% in March.
- The inflation increase was mainly driven by higher gas prices and costly computer parts used for AI technology.
- The Federal Reserve has kept interest rates steady this year to fight inflation but may raise rates later.
- Core inflation, which excludes energy and food, rose 3.4% in May compared to last year.
- Consumer spending grew 0.3% in May after adjusting for inflation.
- Inflation has been above the Fed’s 2% goal for over five years, causing concern for many Americans.
- Gas prices averaged nearly $4.50 per gallon last month, falling to about $3.92 recently but still 20% higher than last year.
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.