The US economy is experiencing a surge in inflation, with the Federal Reserve’s preferred inflation gauge rising to a new three-year high in May. Consumer prices increased by 4.1% in May from a year earlier, the largest annual increase since April 2023.
Inflation Drivers
The increase was largely driven by more expensive gas, as well as pricier semiconductors and other computer equipment that are in high demand for the AI buildout. Apple announced an increase in prices for Macs and iPads, citing a memory chip shortage brought on by the artificial intelligence boom.
The US economy expanded at a solid and unexpected 2.1% annual pace from January through March, the Commerce Department reported. The growth in gross domestic product marked a rebound from a sluggish 0.5% in the last three months of 2025.
Mortgage Rates and Jobless Aid
The average long-term US mortgage rate edged higher, staying close to 6.5%. The benchmark 30-year fixed rate mortgage rate rose to 6.49% from 6.47% last week. Fewer Americans applied for jobless aid last week, with US applications for unemployment benefits falling by 12,000 to 215,000.
Original reporting: KTBS 3 (Shreveport) — read the source article.
