Key inflation gauge jumps to 3-year high in latest sign of affordability challenges (opens in new tab)

The Federal Reserve’s preferred inflation gauge rose to a new three-year high in May as gas prices peaked, a sign rising costs could pose political problems for President Donald Trump and his political party as midterm elections near. Consumer prices rose 4.1% in May from a year earlier, the Commerce Department said Thursday, the largest annual increase since April 2023. Rising prices have caused the inflation-fighters at the Federal Reserve to keep their key rate unchanged this year, a rever...