latest news in inflation
US Inflation Hits 3-Year High: Why Your Wallet Feels the Pinch
Washington DC, Saturday, 13 June 2026.
US inflation surged to 4.2% in May 2026—the highest since April 2023—driven by soaring energy, housing, and food costs. With wages growing at just 3.4%, Americans are losing purchasing power. The Fed may delay rate cuts, keeping borrowing costs high for businesses and consumers alike. Here’s what’s really driving the squeeze.
ECB Defies Economic Slowdown with Bold Rate Hike Amid War-Driven Inflation
Frankfurt, Saturday, 13 June 2026.
The European Central Bank (ECB) has raised interest rates for the first time since 2023, defying economic slowdown fears as inflation surges to 3.2%. The move, driven by energy shocks from the Middle East conflict, marks a high-stakes gamble to tame inflation—projected to stay above target until late 2027. Critics warn of stagflation risks, with GDP growth slashed to just 0.8% in 2026. ECB President Christine Lagarde calls the decision ‘robust across all scenarios,’ but the policy could deepen Europe’s economic divide, straining businesses and households already grappling with record borrowing costs.