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Key Fed inflation gauge rises to three-year high in May after gas prices peaked

Consumer prices rose 4.1% in May from a year earlier – a sign rising costs could pose problem for Trump in midterms

The Federal Reserve’s preferred inflation gauge rose to a new three-year high in May as gas prices peaked, a sign rising costs could pose political problems for Donald Trump and his political party as midterm elections near.

Consumer prices rose 4.1% in May from a year earlier, the US commerce department said Thursday, the largest annual increase since April 2023. On a monthly basis, inflation was 0.4% last month, matching April’s increase and down from 0.7% in March.

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Jun 25, 2026 US economy Donald Trump Business
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Key Fed inflation gauge rises to three-year high in May after gas prices peaked US economy Jun 25, 2026 Key Fed inflation gauge rises to three-year high in May after gas prices peaked Consumer prices rose 4.1% in May from a year earlier – a sign rising costs could pose problem for Trump in midtermsThe Federal Reserve’s preferred inflation gauge rose to a new three-year high in May as gas prices pea...
Key Fed inflation gauge rises to three-year high in May after gas prices peaked

Consumer prices rose 4.1% in May from a year earlier – a sign rising costs could pose problem for Trump in midtermsThe Federal Reserve’s preferred inflation gauge rose to a new three-year high in May as gas prices pea...

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