Inflation was up 4.1% in May, according to the BEA’s personal consumption expenditures index. We know hot energy prices, resulting from the war in Iran, were part of that spike. But cut out energy and food, and inflation still hit a three-year high, at 3.4%. So what else is driving the increase? Also in this episode: Q1 GDP is revised up, Wyoming navigates the consequences of property tax cuts, and Great Lakes cargo ships make up a vital branch of U.S. supply chains. Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter. Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future. Read the stories from today’s episode: It&#x27;s not just food and energy — &quot;core&quot; inflation is up as well GDP grew 2.1% in the first quarter of 2026. What does that tell us? What do we need property taxes for? Wyoming is finding out Need a burger? A car? Winter road salt? Thank cargo ships on the Great Lakes Gen Z trades in date-flation for &quot;solo-maxxing&quot;

Inflation sped up in May. What's to blame?

Marketplace

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**Podcast:** Marketplace

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[SPEAKER_C] We'll do an update on where this economy stands. We'll do taxes too. Sorry about that. And we'll spend some time alone. From American Public Media, this is Marketplace. In Los Angeles, I'm Kai Ryssdal. It is Thursday today. This one is the 25th of June. Good as it always is to have you along, everybody. This is a day of data in this economy of ours. Data about prices and data about growth. 4.1% is the headline price level data point. As you have likely already heard today, the personal consumption expenditure Price Index for May, and that 4.1% is faster than April inflation, as you do not need me to tell you. Most of it thanks to energy and the president's war in Iran. So with energy on its way back down now, on the theory that the ceasefire is going to hold, we are going to do what the Federal Reserve likes to do: spend some time on all the other inflation happening in this economy, the core rate, as it's called. As Marketplace's Justin Ho reports, That's picking up too.

[SPEAKER_D] The rise in core inflation really started in April of last year when the president announced his import taxes.

[SPEAKER_B] Those tariffs did push additional price pressures in the economy, particularly for the price of goods.

[SPEAKER_D] Tim Dewey is chief U.S. economist at SGH Macro Advisors. He says later last ...

Inflation sped up in May. What's to blame?

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Inflation sped up in May. What's to blame?

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.