For the First Time since 2023, U.S. Inflation Tops 4 Percent

Rising gas prices pushed inflation to its highest level in three years last month, a headache for the Federal Reserve and a potential political challenge for the Trump administration as midterm elections near.

Consumer prices rose 4.2 percent in May from a year earlier, the Labor Department said Wednesday, up from 3.8 percent in April and the third straight monthly increase. On a monthly basis, prices rose 0.5 percent last month, after big gains of 0.6 percent in April and 0.9 percent in March.

Prices have now risen faster than wages for several months, pressuring many Americans’ finances and causing consumers to take a decidedly dim view of the economy. Families are dipping into savings to maintain their spending, and more people are falling behind on their credit card bills. Large retailers say they have also noticed changes in customer behavior, like buying smaller amounts of gas during visits to the pump.

Please select this link to read the complete article from The Associated Press.