Inflation rose to 4.1% in May in Fed’s preferred gauge

The Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures price index, rose to a three-year high of 4.1% for the year ending in May. According to the Bureau of Labor Statistics, this increase of three-tenths of a percentage point reflects energy supply disruptions from the war with Iran and peaking gas prices. These rising costs create significant affordability challenges and may present political difficulties for President Trump as the upcoming midterm elections approach.