US May CPI Rises 4.2% Year-on-Year, Highest in 3 Years

(Central News Agency, Washington, D.C., comprehensive foreign news report on the 10th) Economic data released by the United States today shows that consumer inflation in May climbed to a three-year high. As the midterm elections approach, the economic impact of President Trump's initiation of a war against Iran could pose a major challenge for him.

According to reports from AFP and the Associated Press, the Bureau of Labor Statistics said today that the US Consumer Price Index (CPI) in May rose 4.2% compared to the same month last year, higher than the annual increase of 3.8% in April. This marks the third consecutive monthly increase and the highest annual increase since April 2023.

Compared to April, the US CPI in May rose 0.5%, lower than the 0.6% increase in April and the 0.9% increase in March.

Excluding volatile food and energy items, the core CPI in May rose 2.9% year-on-year, slightly up from the 2.8% annual increase in April.

Compared to April, the core CPI in May edged up 0.2%.

Soaring gasoline prices pushed inflation in May to its highest level in three years, troubling the Federal Reserve (Fed) and posing a potential political challenge for the Trump administration as the midterm elections approach.

Rising prices for gasoline, groceries, and other necessities are shrinking household budgets and weakening the confidence of many Americans in the economy.

Persistently high inflation has shifted the debate among Fed policymakers. Earlier this year, they hinted at a preference for cutting the benchmark interest rate twice more this year. Now, more officials say they expect the Fed's next move to be a rate hike rather than a cut.

According to CME Group interest rate futures, Wall Street investors expect the Fed to raise interest rates in December. (Editor: Liu Shuqin) 1150610