Inflation tops 4% for first time in three years, driven by gas prices
9 reported
Inflation has reached its highest level in more than three years, with consumer prices in May up a little more than 4% over a year ago, according to NPR. The increase is largely fueled by higher gasoline prices since the U.S. and Israel launched their war with Iran. AAA reports the average price of gas today is about $4.13 a gallon, up about $1.15 since the war began. Energy prices were the biggest driver of inflation in both April and May. President Trump told The New York Post that when he said he loved the inflation, he meant he loved that inflation was not higher and that it will improve once he ends the war. Average wages are up 3.4% from a year ago, not enough to cover the rising cost of living, and the new Federal Reserve chairman, Kevin Warsh, faces his first rate-setting meeting next week amid pressure from President Trump for lower interest rates.
What’s reported
Inflation topped 4% in May, the highest level in more than three years.
Gas prices rose sharply since the U.S. and Israel launched their war with Iran.
AAA says the average gas price is about $4.13 a gallon, up about $1.15 since the war began.
Energy prices were the biggest driver of inflation in both April and May.
President Trump told The New York Post he loved that inflation was not higher and expects improvement after the war ends.
Average wages are up 3.4% from a year ago, trailing inflation.
New Fed Chairman Kevin Warsh will lead his first rate-setting meeting next week.
Mortgage rates are around 6.5%, up from below 6% before the war.
The National Association of Realtors reported a modest pickup in home sales last month, with first-time buyers at 35%, the highest in almost six years.
Key figures
President Donald Trump
Scott Horsley, NPR reporter
Leila Fadel, NPR host
Steve Inskeep, NPR host
Emily Inlow, mother of two in Nicholasville, Kentucky
Kevin Warsh, new Federal Reserve chairman
Sources: NPR
