Key facts
- US inflation hit a three-year high in May.
- Rising gas and chip prices drove inflation.
- The Federal Reserve's preferred inflation gauge reached this high.
- Average 30-year mortgage rates increased.
- First-quarter GDP growth was solid but slowing.
The Federal Reserve's preferred measure of inflation reached a three-year peak in May, with rising prices for gasoline and computer chips being the main drivers. This inflationary pressure coincides with an upward trend in average 30-year mortgage rates. Concurrently, the U.S. economy demonstrated solid growth in the first quarter, although the pace of this expansion has slowed. The data indicates a complex economic landscape with persistent inflation concerns and shifting interest rate environments.