{
    "success": true,
    "data": {
        "id": 1796329,
        "msgid": "us-inflation-rises-in-may-as-energy-prices-soar-1781103140",
        "date": "2026-06-10 20:52:00",
        "title": "US Inflation Rises in May as Energy Prices Soar",
        "author": "Wisnu Arto Subari",
        "source": "MEDIA_INDONESIA",
        "tags": "",
        "topic": "Economy",
        "summary": "United States annual inflation surged to 4.2 per cent in May, the highest level in three years, driven primarily by escalating energy costs linked to conflict in the Middle East. The data presents a significant challenge for the Federal Reserve under its new chairman, Kevin Warsh, as core inflation also ticked higher and real wages declined, further eroding household purchasing power. The situation is expected to strengthen the US dollar and could exert pressure on the Indonesian rupiah.",
        "content": "<p>United States annual inflation surged to its highest level in three\nyears in May, reaching 4.2 per cent. The jump was driven by the\nescalation of conflict in the Middle East, which triggered a sharp rise\nin global energy prices. According to data from the US Department of\nLabor released on Wednesday (10\/6), the Consumer Price Index (CPI) rose\nfrom 3.8 per cent the previous month. The 4.2 per cent figure is the\nhighest recorded since April 2023, confirming significant price\npressures resulting from energy supply disruptions from the conflict\nzone. The energy sector accounted for more than 60 per cent of the\nmonthly CPI increase. The war in Iran pushed the average price of petrol\nto a four-year high of US$4.56 per gallon at the end of May, according\nto AAA data. Although prices eased to around US$4.15, the petrol index\nwas recorded surging 7 per cent in a month and rising more than 40 per\ncent compared to the prior year. Meanwhile, core inflation, which\nexcludes the volatile food and energy categories, rose 2.9 per cent\nannually. This figure is slightly higher than the 2.8 per cent recorded\nthe previous month but remains in line with economists\u2019 expectations. A\nseparate report showed the real impact on households. Inflation has now\noutpaced annual wage growth for two consecutive months.\nInflation-adjusted hourly earnings fell 0.7 per cent in May. This means\npublic purchasing power is increasingly eroded for essential needs such\nas housing rent, groceries, and fuel. Joe Brusuelas, chief economist at\nRSM, assessed that although annual inflation may be approaching its\npeak, the knock-on effects of high energy prices will continue to be\nfelt. He noted there is a lag effect on other categories, combined with\nmassive investment in the artificial intelligence (AI) sector causing\nsupply chain bottlenecks, which will also exert upward pressure on\nprices. This inflation data poses a major challenge for the Federal\nReserve (The Fed), which will soon convene a meeting under the\nleadership of its new Chairman, Kevin Warsh. The US central bank is now\nfacing overlapping inflationary shocks, ranging from trade tariffs and\nenergy costs to the AI investment boom. The still-solid labour market\ncombined with heated inflation provides a strong rationale for Fed\nofficials to maintain high interest rates. Market participants who\npreviously anticipated interest rate cuts this year are now beginning to\nbet that The Fed may have to raise rates by year-end in order to dampen\nprice pressures. In the global market, uncertainty in the Strait of\nHormuz is expected to continue depressing world energy markets.\nConverted to a domestic context, this fluctuation has the potential to\nexert pressure on the Indonesian rupiah exchange rate in line with the\nstrengthening of the US dollar due to The Fed\u2019s tight monetary\npolicy.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/us-inflation-rises-in-may-as-energy-prices-soar-1781103140",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}