It's not just high gas prices - inflation is now spreading through the US economy

[marmar]

It’s not just high gas prices – inflation is now spreading through the US economy
Published: May 28, 2026 9:42am EDT

D. Brian Blank
Associate Professor of Finance, Mississippi State University
Brandy Hadley
Associate Professor of Finance and Distinguished Scholar of Applied Investments, Appalachian State University


(The Conversation) Americans don’t need a press release to know that inflation is rising. Gasoline is above $4 per gallon amid the ongoing conflict in the Middle East and closure of the Strait of Hormuz, and the release of key price data on May 28, 2026, underscores why policymakers are worried these pressures could spread into the broader economy.

The report offered a mixed but still uncomfortable picture. The month-to-month rise was softer than expected, but the change year over year still points to concern: a 3.8% jump from a year earlier, the fastest pace since 2021, and a less volatile index that excludes food and energy up 3.3%.

This increase suggests inflation isn’t limited to gasoline. Housing, utilities and recreational spending are also keeping underlying inflation elevated, even as other data shows a slowing economy and weaker income growth.

....(snip)....

There’s already some evidence that the inflationary effect of energy prices is spreading. April’s Consumer Price Index report – another inflation gauge – showed a 3.8% leap, the fastest in three years, with energy prices up 18% and spending on airlines up over 20%, while grocery prices posted their largest monthly gain since 2022. Tariff-sensitive categories like apparel and household furnishings are also still climbing. ....................(more)

https://theconversation.com/its-not-just-high-gas-prices-inflation-is-now-spreading-through-the-us-economy-283564

[dem4decades]

1. I don't understand how it is not higher.