Gasoline prices in the U.S. have driven inflation to record highs — Reuters
The rise in gasoline prices, triggered by the military conflict in the Middle East, has caused a sharp acceleration in inflation in the United States.
Inflation rates are expected to reach their highest growth rates in the past three years by May 2026.
A new wave of rising prices for goods and services has significantly increased the financial strain on American families.
The projected Consumer Price Index (CPI) will show high annual inflation for the third consecutive month. Such rates are negatively impacting the purchasing power of the country’s citizens.
An increasing number of Americans are losing the ability to maintain their standard of living or are forced to use their savings to cover daily expenses.
Financial market analysts predict that in May, the rate of overall inflation will outpace wage growth for the second consecutive month.
This will lead to a real decline in the real incomes of the U.S. population. Economists are warning of long-term risks for the country’s domestic market if this trend persists.
“If this trend continues, it will create problems for household consumer spending in the second half of the year,” warned RSM Chief Economist Joseph Brusuelas.
According to preliminary estimates by experts, annual inflation in May is likely to reach 4.2%. This figure would mark a record high since April 2023.
By comparison, in previous reporting periods, the U.S. economy showed more moderate price growth rates. In April, this figure stood at 3.8%, and in March, at 3.3%.
Forecasts for core inflation, which excludes volatile food and energy prices, are also disappointing—it is expected to accelerate to 2.9% year-over-year, up from 2.8% in April.
Despite the challenging overall situation, recent weeks have brought some relief for American consumers. Retail prices for automotive fuel in the domestic market have fallen slightly.
Fuel prices stabilized following the conclusion of a temporary ceasefire with Iran, which helped ease tensions on international energy exchanges.
Reuters reports on this.
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