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Inflation hits 4.1 percent in May: 5 takeaways

Inflation hits 4.1 percent in May: 5 takeaways

Summary

Inflation rose by 4.1 percent over the past year, the fastest rate in three years, according to federal data. Prices increased 0.7 percent in May, mainly due to higher energy costs, creating difficulties for President Trump and government decision-makers.

Key Facts

  • Inflation increased 4.1 percent over the last 12 months.
  • The May inflation rise was 0.7 percent for that month alone.
  • This is the fastest annual inflation rise in three years.
  • Much of the price rise was caused by higher energy costs.
  • The data was released by the federal government on a Thursday.
  • Inflation is measured by the Federal Reserve’s preferred price index.
  • The rising prices create challenges for President Trump and policymakers.
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