Inflation in the US rose by 4.1% in May, the highest level in the last three years, amid rising gasoline prices. This poses a political challenge for President Trump.

An important indicator of inflation, the PCE (personal consumption expenditures) index, rose by 4.1% in May, reaching the highest level in the last three years, according to the Department of Commerce. This increase, primarily driven by higher gasoline and computer equipment prices, poses a political challenge for President Donald Trump in the context of the midterm elections. Core inflation, which excludes volatile items, rose by 3.4%. The U.S. Federal Reserve monitors this data to maintain an inflation target of 2%. Additionally, consumer spending increased by 0.7%, suggesting robust economic activity. However, rising prices and tariffs imposed by Trump have contributed to increased costs, making affordability a political issue. Financial markets expect an interest rate hike in September amid concerns about inflation.