{"id":1470,"date":"2026-06-10T15:05:21","date_gmt":"2026-06-10T15:05:21","guid":{"rendered":"https:\/\/coloradospringsmoverss.com\/?p=1470"},"modified":"2026-06-10T15:05:21","modified_gmt":"2026-06-10T15:05:21","slug":"us-households-businesses-stung-by-higher-energy-prices-that-have-pushed-inflation-above-4","status":"publish","type":"post","link":"https:\/\/coloradospringsmoverss.com\/?p=1470","title":{"rendered":"US households, businesses stung by higher energy prices that have pushed inflation above 4%"},"content":{"rendered":"
Getting your Trinity Audio player ready…<\/strong><\/div>

By CHRISTOPHER RUGABER, AP Economics Writer<\/strong><\/p>\n

WASHINGTON (AP) \u2014 Rising\u00a0gas prices\u00a0pushed 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\u00a0elections\u00a0near.<\/p>

Read more Honda recalls more than 880,000 cars due to a problem with rear suspension components<\/a><\/p>\n

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

Prices have now risen faster than wages for several months, pressuring many Americans\u2019 finances and causing consumers to take a\u00a0decidedly dim view\u00a0of the economy. Families are dipping into savings to maintain their spending, and more people are falling behind on their credit card bills. Large retailers\u00a0say they have also noticed changes in customer behavior,\u00a0like buying smaller amounts of gas during visits to the pump.<\/p>\n

Inflation is now well above the Federal Reserve\u2019s 2% target, which it has surpassed for more than five years. New\u00a0Fed chair Kevin Warsh\u00a0will preside over his first policy meeting next week, when the central bank is expected to keep its key interest rate unchanged. But the Fed is also likely to change the statement it issues after each meeting to remove a suggestion that its next move could be to lower rates. With inflation proving stubborn, financial markets expect it could instead raise rates by the end of the year.<\/p>\n

When the Fed lifts rates, over time it can make mortgages, auto loans, and business borrowing more expensive.<\/p>\n

Outside energy costs, price increases last month were not as dramatic, a sign that sharply higher inflation hasn\u2019t yet spread throughout the economy. Should the\u00a0Iran war\u00a0end and oil and gas prices decline, headline inflation could begin to cool. Gas prices have fallen this month, though they remain elevated.<\/p>\n