Inflation in May likely topped 4% for the first time in 3 years, economists say
CBS News • • general
Key Points:
- Economists forecast the U.S. Consumer Price Index (CPI) for May to show a 4.2% annual increase, the fastest pace in over three years, up from 3.8% in April.
- Core CPI, which excludes food and gas, is expected to rise modestly to 2.9% annually in May, slightly up from 2.8% in April.
- The recent inflation surge is largely attributed to government policy and geopolitical factors like the Iran war, rather than pandemic-related supply disruptions.
- Higher energy prices, particularly fuel costs from mid-April to mid-May, are the main driver of ongoing inflation, although gas prices have recently declined.
- Economists will also examine how increased fuel costs are affecting broader goods and services prices, including transportation and shipping expenses.