government
Key inflation gauge jumps to 3-year high in latest sign of affordability challenges
By Christopher Rugaber, Associated Press at KSAT 12 (ABC affiliate) — San Antonio
· June 25, 2026
· 4 min read
The Federal Reserve’s preferred inflation gauge rose to a new three-year high in May as gas prices peaked, a sign rising costs could pose political problems for President Donald Trump and his political party as midterm elections near. Consumer prices rose 4.1% in May from a year earlier, the Comm...
Key takeaway 1% in May from a year earlier, the Commerce Department said Thursday, the largest annual increase since April 2023.
Why this matters in Terrell Hills News
For Terrell Hills residents, the latest inflation numbers mean that everyday expenses, from filling up the gas tank to dining out, will continue to take a bigger bite out of their budgets. As the summer driving season gets underway, the recent decline in gas prices may provide some relief, but the overall trend of rising costs will likely persist. The increased prices of computer components and services, such as restaurant meals and health care, will also have a direct impact on the community. With the Federal Reserve considering potential rate hikes, Terrell Hills homeowners and businesses should be prepared for potential changes in borrowing costs and consumer spending habits. As the local economy continues to grow, it will be important to monitor how these national trends affect the community's affordability and economic stability. The city's residents will be watching closely to see how these changes play out in the coming months.
About this story
Original reporting by KSAT 12 (ABC affiliate) — San Antonio . Terrell Hills News surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit KSAT 12 (ABC affiliate) — San Antonio . Have a tip or correction? Contact our newsroom .
Category: government ·
Published: June 25, 2026 ·
Source: KSAT 12 (ABC affiliate) — San Antonio ·
Reading time: 4 min
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Frequently asked about this story
What is this story about? The Federal Reserve’s preferred inflation gauge rose to a new three-year high in May as gas prices peaked, a sign rising costs could pose political problems for President Donald Trump and his political party as midterm elections near. Consumer prices rose 4.1% in May from a year earlier, the Comm...
When was this published? This article was first published on June 25, 2026 by KSAT 12 (ABC affiliate) — San Antonio and curated for Terrell Hills News readers.
Who reported this story? This story was reported by Christopher Rugaber, Associated Press at KSAT 12 (ABC affiliate) — San Antonio. To learn more about how Terrell Hills News selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more government coverage from Terrell Hills News, or browse our daily briefing and topic hubs .
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