US inflation rises to 3-year high, spending picks up (opens original article in a new tab)

US inflation reached a 3-year high in May as consumer spending increased, with the Federal Reserve likely to face pressure to raise interest rates.

• US inflation rose to 4.1% in May, the highest since April 2023
• Consumer spending increased 0.3% in May despite rising prices
• Higher tax refunds and a strong labor market support spending but pay gains lag behind inflation