economy
Inflation report shows a contained energy shock
Despite inflation at its highest rate in over three years, the pain isn't bleeding through to inflation in other goods and services.
TL;DR
- Inflation reached its highest rate in over three years, driven by rising energy costs.
- Energy prices accounted for over 60% of the monthly inflation increase, with gasoline prices up 7% in May.
- Core inflation, excluding food and energy, rose moderately, indicating the shock may be contained.
- Real hourly earnings fell 0.8% from a year earlier, impacting consumers' purchasing power.
- The gap between headline and core inflation is widening, a reversal from recent trends.