US Consumer Inflation Likely Reached Three Year High
Rising energy costs driven by Middle East conflict pushed the annual consumer price index to a projected 4.2 percent in May. This third straight month of strong readings suggests the Federal Reserve will maintain current interest rates as inflation continues to outpace wage growth.
The United States Consumer Price Index (CPI) likely rose 4.2% year-on-year in May as energy costs increased. This projected figure marks the fastest inflation pace in three years and the third consecutive monthly acceleration. Persistent price pressure provides ammunition for the Federal Reserve to keep interest rates unchanged this year.
### Energy Costs Drive Inflation Peak A Reuters survey of economists indicates the annual CPI rose to 4.2% in May, up from 3.8% in April and 3.3% in March. Monthly inflation increased 0.5% as gasoline prices climbed 8.8% to a national average of $4.60 per gallon. Fuel costs spiked after the conflict involving Israel and Iran disrupted global markets.
