May inflation surge

Link copied by Sylvan Lane - 06/25/26 5:27 PM ET Link copied Federal inflation data released Thursday showed prices rising at the fastest annual rate in three years, posing serious challenges for President Trump and policymakers. The Federal Reserve s preferred gauge of inflation showed prices rising 4.1 percent over the past year and 0.7 percent in May alone. While much of the increase came from higher energy prices tied to the Iran war, the breadth of May price hikes alarmed economists. The new personal consumption expenditures (PCE) report showed the stark costs of the war in Iran, where the closure of the Strait of Hormuz throttled the global supply of oil and other key commodities. U.S. households spent $552.8 billion on gasoline and other energy products in May, up from $422.3 billion in February and $401.6 billion in May 2025. Prices for gasoline and energy products were up 6.5 percent in May after rising 5.5 percent in April and a whopping 20.9 percent in March, the first full month of the Iran war. Inflation is at a 3-year high due to the war in Iran and it s painful for middle-class and moderate-income Americans, said Heather Long, chief economist at Navy Federal Credit Union, in an analysis. Welcome to The Hill s Business & Economy newsletter, I m Sylvan Lane — covering the intersection of Wall Street and Pennsylvania Avenue. Did someone forward you this newsletter? Subscribe here. A new premium access digital subscription — into the rooms, conversations, and analysis that shape Washington s most important moments. Launching July 2026. Join the waitlist today. Key business and economic news with implications this week and beyond: Check your quarters: Rare July 4th coins entering circulation While any change you receive after your next cash transaction will likely be missing America s smallest denomination, it may soon contain a new, limited-edition quarter. What the dates printed on your food actually mean Starting next month, foods sold in California will no longer have a confusing food label printed on them, thanks to a new state law. Outside of the Golden State, however, you may still find yourself just as confused staring at your food packaging. Oil tankers exit Strait of Hormuz despite Iran threats Dozens of tankers passed through the Strait of Hormuz on Thursday, via a route along the coast of Oman promoted by a United Nations maritime agency. Branch out with more stories from the day: Vermont is the first state to ban paraquat, a weed killer linked to Parkinson s disease MONTPELIER, Vt. (AP) — Vermont has become the first U.S. state to ban paraquat, one of the most commonly … Business and economic news we ve flagged from other outlets: Alito appears testy during Sotomayor s asylum dissent reading from the bench Justice Samuel Alito responded tersely to Justice Sonia Sotomayor on Thursday morning after the liberal justice read her blistering dissent to his majority opinion in a case on asylum seekers. Read more Putin s reign may not survive the impending fall of Crimea Tuesday marked the third anniversary of Yevgeny Prigozhin s mutiny against Russian President Vladimir Putin. Prigozhin failed and paid with his life. But Russia as a whole, and Russian-occupied Crimea in particular, might have been better off had the man once known as Putin s chef … Read more Opinions related to business and economic issues submitted to The Hill: Check out The Hill s Business page for the latest coverage. Like this newsletter? Take a moment to view our other topical products here Privacy Policy | Manage Subscriptions | Unsubscribe 400 N Capitol Street NW Suite 650, Washington, DC 20001 Copyright 1998 – 2025 Nexstar Media Inc. | All Rights Reserved. If you believe this has been sent to you in error, please safely unsubscribe. Copyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

May inflation surge

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