BUSINESSFORTUNE
Inflation is back above 4% for the first time since 2023—but Kevin Warsh might catch a break
Inflation rose to 4.2% in May, driven largely by energy price increases, while core CPI remained below expectations. The Fed's focus on core inflation suggests limited overheating risks, but the oil shock complicates rate-cut prospects for new Fed chair Kevin Warsh.
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- April CPI came in hot, rising to 3.8% the highest level since May 2023. Core CPI also moved higher to 2.8%, beating expectations of 2.7%. With oil prices surging, inflation is starting to look uncomfortable again. Now the market is pricing in higher odds of Fed rate hikes.
- Inflation surpassed 4% for the first time since 2023
- May inflation likely topped 4% for first time in 3 years, economists say
- Inflation surged to 4.2% in May — the highest in three years