Inflation Stayed Above 4% in May, and a Fed Rate Hike Could Follow

Inflation topped 4% in May 2026 while consumer spending rose 0.7%, Reuters reported June 25. Stripping out food and energy, prices rose 3.3% in June from a year earlier — down from 3.4% in May, per Reuters July 14. That's still well above the Federal Reserve's 2% goal, leaving another interest rate hike possible.