The Fed’s preferred inflation measure rose at a 4.1% annual pace in May, the fastest since April 2023, as energy prices climbed. Consumer spending and incomes still increased after adjusting for inflation.
Posts tagged as “Gas Prices”
The national average price for regular gasoline fell below $4 a gallon for the first time since March after a preliminary U.S.-Iran agreement to end the war and reopen the Strait of Hormuz. Prices remain well above prewar levels, and experts warn broader cost pressures may persist.
U.S. consumer prices rose 4.2% in May from a year earlier, the fastest increase since April 2023. Energy costs, especially gasoline, drove much of the rise as conflict disrupted oil shipping through the Strait of Hormuz.
U.S. inflation rose to 4.2% in May, the highest level in three years, as energy costs tied to the Iran war continued to climb. Core inflation increased 2.9%, while wage growth lagged behind the broader rise in prices.
The House voted 215-208 to approve a war powers resolution aimed at forcing President Donald Trump to withdraw U.S. forces from Iran unless Congress authorizes the conflict. Trump denounced the four Republicans who joined Democrats as “GRANDSTANDERS” and called the vote “unpatriotic.”
President Trump says preventing Iran from obtaining nuclear weapons is his top priority, dismissing concerns about the economic impact on Americans amid rising inflation and gas prices. Democrats and polls highlight widespread public dissatisfaction with his handling of the economy during the Iran conflict.
President Donald Trump backs temporarily suspending the federal gas tax to ease high fuel prices, but experts say the relief for drivers would be modest. Congressional approval is needed, and the move could cost billions in government revenue.
A ceasefire between the U.S. and Iran has eased tensions but gas prices remain high amid uncertainty over the Strait of Hormuz. Experts say any relief at the pump could take weeks and may reverse if the truce falters.