Americans are bracing for higher costs of daily essentials as inflation is expected to reach 4.2% in May, according to the Labor Department estimate. The Consumer Price Index (CPI) report, set to be released at 8:30 a.m. ET, forecasts a 0.5% monthly rise in costs, marking a fresh increase in prices.
The inflation rise is attributed to higher fuel prices and supply chain problems, making production and transport more expensive. This has led to a clear upward trend in prices, with inflation increasing from 2.4% in February to 3.3% in March and 3.8% in April.
A national poll of 3,000 U.S. adults found that 80% of Americans think inflation above 3% is unacceptable, showing strong public frustration. The same poll showed 62% of people want inflation to stay at 2% or below, matching long-term economic goals.
Consumer confidence has dropped sharply, reaching 44.8 in May, the lowest level in more than 70 years of tracking. This means people feel very negative about the economy, with sentiment falling 10% in one month and 14.2% over the year.
