{"id":261900,"date":"2026-06-10T14:12:57","date_gmt":"2026-06-10T14:12:57","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/261900\/"},"modified":"2026-06-10T14:12:57","modified_gmt":"2026-06-10T14:12:57","slug":"cpi-report-live-updates-inflation-jumps-4-2-as-iran-war-intensifies-price-pressures-3","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/261900\/","title":{"rendered":"CPI Report Live Updates: Inflation Jumps 4.2% as Iran War Intensifies Price Pressures"},"content":{"rendered":"

\"Lydia<\/a>What to know about the report.<\/a><\/p>\n

U.S. inflation accelerated for a third-straight month in May amid a stalemate in negotiations to end the war with Iran, adding to the price pressures confronting consumers.<\/p>\n

The Consumer Price Index report rose 4.2 percent in May from a year earlier, new data from the Bureau of Labor Statistics showed on Wednesday. That is up from a 2.4 percent annual increase before the conflict in the Middle East started in February and is the fastest pace since April 2023. Over the course of the month, overall prices jumped 0.5 percent.<\/p>\n

Energy prices drove the bulk of the increase in May, rising 3.9 percent over the month. Once those were stripped out alongside food prices, the \u201ccore\u201d index rose 2.9 percent on a year-over-year basis. Core prices rose 0.2 percent for the month, a 0.2 percentage point decrease from April\u2019s monthly rate.<\/p>\n

Energy costs have been spilling into categories where they make up a large chunk of the ultimate price tag, including food and airline fares, which rose 2.7 percent in May and are up 26.7 percent since this time last year. Hotel rates also increased 0.5 percent, in a possible indication of impact from the World Cup, although the hospitality industry has been disappointed in demand for rooms. <\/p>\n

For the Federal Reserve, which will vote next week on whether to change interest rates, the most important question is whether stickier categories like manufactured goods and services \u2014 the core inflation \u2014 are also being affected. This core reading was slightly softer than expected, and it may reassure monetary policymakers that they can stand pat for now, even though the labor market appears to be strengthening<\/a>.<\/p>\n

The war in the Middle East is not the only factor pushing prices up. The data center boom has created demand for the memory chips that go into nearly all consumer electronics, reversing a long slide in the cost of technology. And a persistent drought has thinned out production of some crops and livestock, especially beef.<\/p>\n

The main factor keeping a lid on prices: consumers, who have by now spent their tax refunds and have lately seen smaller increases in their paychecks. Annual increases in average hourly earnings have now fallen behind inflation<\/a> for two months in a row. If some categories are not accelerating, it could be because shoppers simply lack the ability to pay more. <\/p>\n

\u201cWeakening of pricing power tells you something about how the seller was thinking about their final consumer, and that tells you a little bit about growth,\u201d said Atsi Sheth, chief credit officer at Moody\u2019s Ratings. \u201cDespite the still relatively low unemployment, the household\u2019s capacity to consume is eroding.\u201d<\/p>\n

Show more<\/p>\n","protected":false},"excerpt":{"rendered":"What to know about the report. U.S. inflation accelerated for a third-straight month in May amid a stalemate…\n","protected":false},"author":2,"featured_media":261890,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[58382,5292,83081,9,24,63,5291,134,136,135,2052],"class_list":["post-261900","post","type-post","status-publish","format-standard","has-post-thumbnail","category-staten-island","tag-federal-reserve-system","tag-fees-and-rates","tag-inflation-economics","tag-new-york","tag-new-york-city","tag-nyc","tag-prices-fares","tag-staten-island","tag-staten-island-headlines","tag-staten-island-news","tag-united-states-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/261900","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=261900"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/261900\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/261890"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=261900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=261900"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=261900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}