U.S. inflation rate in May returns to the "4" range, meeting market expectations

Deep Tide TechFlow News, June 10 — The pace of U.S. consumer price increases reached its fastest in three years, with Middle East conflicts pushing up gasoline and other energy prices, providing more justification for the Federal Reserve to keep interest rates unchanged until 2027. Data released on Wednesday showed that, over the 12 months ending in May, the Consumer Price Index (CPI) rose 4.2% year-over-year, the largest increase since April 2023.

Compared to last month, prices rose 0.5% month-over-month, down from a 0.6% increase in April. The CPI has increased significantly for the third consecutive month, highlighting the growing pressure on households as more consumers appear to be dipping into savings to cover expenses. Additionally, inflation has exceeded wage growth for the second straight month, which could negatively impact overall economic growth. Meanwhile, the sharp rise in living costs poses a significant political challenge for President Trump and his party, as they attempt to maintain control of Congress in the midterm elections in November. (Jin10)