As the daytime high temperature soars into the 80s, a United States Postal Service postman keeps cool by standing in the shade of a gasoline station sign posting the per-gallon prices for the various grades of fuel available Thursday, June 4, 2026, in central Denver. (AP Photo\/David Zalubowski)<\/small><\/p>\n
2026-06-10T04:00:06Z<\/p>\n
WASHINGTON (AP) \u2014 Consumer prices probably jumped in May for the third straight month, heightening concerns for the inflation fighters at the Federal Reserve and underscoring the threat that rising costs pose for the Trump administration as midterm elections<\/a><\/span> near. <\/p>\n Inflation is expected to reach 4.2% in May from a year earlier when the Labor Department reports last month\u2019s figures Wednesday, according to a survey of economists by data provider FactSet The annual increase would be up from the 3.8% reading in April<\/a><\/span>. On a monthly basis, prices are forecast to have risen a hefty 0.5%, slightly below the 0.6% increase in April.<\/p>\n Inflation<\/a><\/span> had been cooling before President Donald Trump imposed sweeping tariffs in April 2025, which lifted the costs of many goods. Prices have since surged after the Iran war made oil and gas more expensive, making affordability a key political issue. The main question now is whether inflation will fade if the war ends and oil and gas prices fall, or will it persist even after the war. <\/p>\n Some economists worry that prices are still elevated in areas that should be unaffected by gas costs, such as dental care, motor vehicle repair, and other services. At the same time, wages are rising only modestly, which should reduce pressure on firms to raise prices further. <\/p>\n To that end, economists and financial markets will closely watch core prices, which exclude the volatile food<\/a><\/span> and energy categories. Core inflation is forecast to have risen 0.3% in May from April, according to FactSet, a pace that is consistent with annual readings far higher than the Fed\u2019s 2% target. On an annual basis, core inflation may tick higher to 2.9% from 2.8%. <\/p>\n