Overview
- The Labor Department report released Tuesday showed prices up 3.8% from a year earlier, the fastest since May 2023 and roughly in line with forecasts near 3.7%.
- Energy costs jumped 17.9% and gasoline rose 28.4%, with news reports tying the surge to oil supply risks in the Strait of Hormuz.
- Excluding food and energy, core prices climbed 2.8%, and grocery prices rose 3.2%, pointing to pressure beyond fuel.
- Following Tuesday’s data, investors lowered expectations for near‑term easing, and many now see the Federal Reserve holding rates through the rest of the year.
- Warsh, a former Fed governor nominated by President Trump, is reported to be in line to become chair this month, setting up a difficult start for the new leadership.