U.S. inflation accelerated further during the spring as higher tariffs, rising energy costs linked to geopolitical tensions and heavy investment in artificial intelligence added to price pressures, according to the Federal Reserve's latest monetary policy report to Congress, Reuters reported.
The report said inflation remains above the U.S. central bank's 2% target, with the Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred inflation gauge, running at roughly twice that level as of May. The findings underscore the central bank's continued struggle to bring inflation back to target despite holding interest rates steady since December.
