Inflation Gauge Surges

U.S. core inflation rose to a 3-year high, complicating Fed rate-cut hopes.

L 17%

1 of 6 articles on this topic (17%) were written by left-leaning sources.

C 50%

3 of 6 articles on this topic (50%) were written by centrist sources.

R 33%

2 of 6 articles on this topic (33%) were written by right-leaning sources.

Fed’s Preferred Inflation Measure Hits Highest Level Since April 2023

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

The Fed's preferred inflation gauge shows prices rising at fastest pace in 3 years

Main Story

Balanced

The core narrative of this topic, summarized from reporting across multiple outlets. This captures the key facts that most outlets agree on.

The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures price index, rose 4.1% from a year earlier in May, its fastest pace since April 2023 and up from 3.8% in April. Prices increased 0.4% on the month, while core PCE, excluding food and energy, rose 3.4% annually and 0.3% monthly, marking its highest annual core reading since October 2023. The acceleration, driven in part by higher energy and gas prices, underscores the Fed’s challenge in bringing inflation under control and reinforces policymakers’ tougher tone. The renewed price pressures also raise affordability concerns and create political risks for President Donald Trump and Republicans as midterm elections approach.