US CPI Rises, Fed Ready to Raise Interest Rates
Inflation in the United States rose again in May 2026, driven by a surge in energy prices due to the escalating war in Iran. The latest data from the Bureau of Labor Statistics shows that the Consumer Price Index (CPI) rose 4.2% annually, the largest increase since early 2023.
Meanwhile, the core CPI—which excludes food and energy components—rose only 0.2% from April and 2.9% from a year earlier, slightly below market expectations. This suggests that inflationary pressures are largely coming from energy prices and not from core domestic consumption.
This increase in inflation reinforces expectations that the Federal Reserve will remain aggressive in its interest rate policy to curb price movements. Investors are now closely monitoring how the Fed responds to this data, given the risk that inflation triggered by the Middle East conflict could add to global market volatility.
In the commodity market, crude oil prices remained high after the Iran conflict sparked supply concerns through the Strait of Hormuz, while gold prices came under pressure from rising US bond yields, as precious metals tend to be less attractive when interest rates rise. (gn)*
Source: Newsmaker.id
