Inflation — not as bad as you think (opens original article in a new tab)

Inflation increased to 4.2% in May, primarily due to energy prices, but differs from past trends as money supply growth remains low, suggesting a temporary rise rather than a sustained crisis.

• The CPI rose 4.2% year over year in May, the fastest since 2023.
• Inflation is driven by energy and gasoline prices, not broad economic factors.
• Money supply growth is subdued compared to 2020-2022, reducing sustained inflation risk.