US inflation hits 4.2% in May, oil prices rise amid Iran tensions
8 reported
According to a single-source report from The Guardian, US inflation reached 4.2% in May, the highest reading since April 2023, driven primarily by rising energy prices. Oil prices increased further, with Brent crude rising 1% to $92.45 a barrel after President Donald Trump warned Iran will have to “pay the price” for taking too long to negotiate a deal to extend a ceasefire and reopen the Strait of Hormuz. US stocks fell at the open, with the S&P 500 down 0.4% and the Nasdaq down 0.5%, while futures pointed to further declines later in the day. The report also noted that the German economy is at risk of a technical recession due to the Iran energy shock, according to economists at the DIW research institute. Separately, Chinese car company BYD announced plans to become the world’s biggest automaker within five years, targeting Toyota’s top spot.
What’s reported
US inflation hit 4.2% in May, the highest since April 2023.
Brent crude rose 1% to $92.45 a barrel after President Trump warned Iran.
US stocks fell at the open: S&P 500 down 0.4%, Nasdaq down 0.5%.
Futures for S&P 500 down 1.1%, Nasdaq futures down 1.6%.
Gasoline prices rose 7.0% month-on-month, energy index up 3.9%.
Core CPI rose 0.2% month-on-month, with core goods prices falling 0.1%.
German economy at risk of technical recession due to Iran energy shock, per DIW.
BYD aims to be world’s biggest automaker within five years.
Key figures
President Donald Trump
Isaac Stell, investment manager at Wealth Club
Kevin Warsh, at the helm of the Federal Reserve
Arielle Ingrassia, associate director at Evelyn Partners
George Brown, senior economist at Schroders
Stephen Brown, chief North America economist at Capital Economics
Geraldine Dany-Knedlik, DIW’s head of forecasting
Wang Chuanfu, BYD founder and chair
Chris O’Shea, British Gas boss
Sources: The Guardian
