Inflation Indicator Surges to Highest Level in Three Years

WHO:

CNN - President Trump has pushed for the Federal Reserve to cut rates.

CBS News - The Federal Reserve is the central bank involved in monitoring inflation.

WHAT:

[08:48 AM EDT] - CBS News - The Personal Consumption Expenditures index rose at a 4.1% annual rate in May, matching economists' forecasts according to financial data service FactSet.

[08:48 AM EDT] - Bloomberg Markets - Inflation-adjusted consumer spending rose 0.3% from a month earlier in May.

[08:48 AM EDT] - CBS News - The Personal Consumption Expenditures index rose at a 4.1% annual rate in May, matching economists' forecasts according to financial data service FactSet.

[08:48 AM EDT] - CBS News - Inflation-adjusted consumer spending rose 0.3% from a month earlier in May.

CNN - The Personal Consumption Expenditures price index rose to 4.1% in May from 3.8% in April.

CBS News - The Personal Consumption Expenditures index rose at a 4.1% annual rate in May, matching economists' forecasts.

CNN - Core inflation, excluding gas and food prices, rose at an annual rate of 3.4% from 3.3% in April.

CBS News - The 4.1% inflation rate is the highest level since April 2023.

WHERE:

CNN - The data was released by the Commerce Department.

WHEN:

CBS News - The inflation data pertains to May.

WHY:

[08:48 AM EDT] - ABC News - Rising costs could pose political problems for Trump as midterm elections near.

CNN - High gas prices contributed to the surge in annual inflation.

CNN - There are lingering concerns about sticky inflation, influencing Federal Reserve policymakers' decisions.

HOW:

CNN - Financial markets are currently pricing in the possibility of rate hikes later this year.

(UPDATED June 25, 2026 21:28 UTC)

The Personal Consumption Expenditures index increased at a 4.1% annual rate in May, aligning with economists' predictions according to financial data service FactSet. Additionally, inflation-adjusted consumer spending saw a rise of 0.3% from the previous month. As midterm elections approach, rising costs may present political challenges for Trump.

(UPDATED June 25, 2026 15:54 UTC)

The Personal Consumption Expenditures index increased at a 4.1% annual rate in May, aligning with economists' expectations according to financial data service FactSet. Additionally, inflation-adjusted consumer spending saw a rise of 0.3% from the previous month. These rising costs could create political challenges for Trump as the midterm elections approach.

(UPDATED June 25, 2026 13:47 UTC)

President Trump is advocating for the Federal Reserve to cut interest rates as inflation concerns continue to rise. The latest data from the Commerce Department shows that the Personal Consumption Expenditures price index increased to 4.1% in May, the highest level since April 2023, with core inflation also edging up to an annual rate of 3.4%. Financial markets are responding by pricing in the possibility of rate hikes later this year, as high gas prices and persistent inflation remain key issues for policymakers.