Inflation Tops 4% for First Time in Three Years, Driven by Gas Prices
8 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. launched its war with Iran. President Trump responded to the inflation number by saying "I love it," later clarifying to The New York Post that he meant he loved that inflation was not higher and that it will improve once he ends the war. AAA reports 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. Average wages are up 3.4% from a year ago, which is not enough to cover the rising cost of living. The new Federal Reserve chairman, Kevin Warsh, will lead his first rate-setting meeting next week, and interest rates are likely to remain elevated.
What’s reported
Inflation topped 4% in May, the highest level in more than three years.
Gas prices have risen 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.
Average wages are up 3.4% from a year ago.
Daycare prices are up about 3.5% nationwide.
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
Emily Inlow, mother of two in Nicholasville, Kentucky
Kevin Warsh, new Federal Reserve chairman
Sources: NPR
