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Inflation likely reached 3-year high last month as Iran war spikes gas prices
Economists say core prices also climbed 0.3% as tariffs, diesel costs and higher shipping charges kept inflation above the Federal Reserve’s 2% target.
- The Labor Department reports inflation reached 4.2% in May, up from 3.8% in April, according to a FactSet survey. Monthly prices are forecast to have risen 0.5%.
- Iran's closure of the Strait of Hormuz choked off global oil supply, causing gas prices to surge from about $4.04 in mid-April to $4.49 in mid-May. Prices have since fallen to $4.16, according to AAA.
- More expensive diesel fuel lifted shipping costs for UPS and FedEx, while core inflation is forecast to rise 0.3% monthly, with annual rates ticking up to 2.9% from 2.8%.
- Stubbornly high inflation shifted Fed policymakers' debate toward rate hikes rather than cuts. Wall Street investors expect the Fed to raise rates in December, according to CME Fedwatch futures.
- Despite higher inflation, the job market is improving and the economy is growing, yet new Fed Chair Kevin Warsh faces a difficult balancing act between growth and price stability.
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Inflation likely reached 3-year high last month as Iran war spikes gas prices
Inflation likely reached 3-year high last month as Iran war spikes gas prices - The Boston Globe
Inflation is expected to reach 4.2 percent in May from a year earlier when the Labor Department reports last month’s figures Wednesday, according to a survey of economists by data provider FactSet
·Boston, United States
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CHOCHILINO Inflation likely reached 3-year high last month as Iran war spikes gas prices %
WASHINGTON — Consumer prices probably jumped in May for the third straight month, heightening concerns for the inflation fighters at the Federal Reserve and underscoring the threat that rising costs pose for the Trump administration as midterm elections near. Inflation is expected to reach 4.2% in May from a year earlier when the Labor Department reports last month’s figures Wednesday, according to a survey of economists by data provider FactSet…
Coverage Details
Total News Sources18
Leaning Left11Leaning Right0Center6Last UpdatedBias Distribution65% Left
Bias Distribution
- 65% of the sources lean Left
65% Left
L 65%
C 35%
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