Inflation Surges as Wages Lag

Inflation surged to a three-year high of 4.2% in May, fueled mostly by soaring energy prices—which drove 60% of the spike. While food costs slowed slightly, the overall cost of living continues climbing, hitting consumers hard as wages lag behind. This report arrives amid renewed scrutiny of President Trump’s price-cutting promises and comes just after Kevin Warsh took the reins at the Fed. With a strong job market and inflation ticking up faster than expected over the past three months, economists predict the Fed may hold—or even hike—rates. The good news? Core inflation, excluding food and energy, is rising slower than feared. Still, real wages are falling for the second straight month, squeezing spending power and deepening the gap between income and cost. Experts say this round won’t match last time’s intensity, projecting a peak of 4.5% to 5% this year—but for now, families are feeling the squeeze. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/b54ceeb0eae425c4