US consumer prices increase as expected in May

The Korea Times

US consumer prices increase as expected in May

WASHINGTON — U.S. consumer inflation increased at its fastest pace in three years in May as the Middle East conflict raised the price of gasoline and other energy products, giving more ammunition for the Federal Reserve to keep interest rates unchanged into 2027. The Consumer Price Index (CPI) increased 4.2 percent in the 12 months through May, the largest gain since April 2023, the Labor Department's Bureau of Labor Statistics said on Wednesday. The CPI advanced 3.8 percent year-on-year in April. Prices increased 0.5 percent on a monthly basis after climbing 0.6 percent in April. Economists polled by Reuters had forecast the CPI increasing 4.2 percent year-on-year and gaining 0.5 percent on a monthly basis. The third straight month of strong increases in the CPI highlighted mounting pressure on households as evidence suggests more consumers are dipping into savings to finance their spending. Inflation outpaced wage growth for a second consecutive month, which could weigh on overall economic growth. The soaring cost of living is a political liability for President Donald Trump and his

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