economy
Inflation in May likely topped 4% for the first time in 3 years, economists say
Economists expect a key inflation gauge set to be released on Wednesday to show that U.S. consumer prices in May rose at their fastest pace in more than three years.
TL;DR
- U.S. consumer prices in May are expected to rise at their fastest pace in over three years, with the CPI forecast at 4.2%.
- Core CPI, excluding food and gas, is projected to rise to 2.9% in May.
- Inflation remains above the Federal Reserve's 2% target and is largely attributed to government policy, not just pandemic-related supply disruptions.
- Rising energy prices, including gasoline and jet fuel, are a primary driver of current inflation.
- Higher fuel costs are impacting the prices of goods transported by truck and air travel.
- A recent poll indicates that three-quarters of Americans feel their incomes are not keeping pace with inflation.