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)
· 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 The San Antonio
For San Antonio residents, the latest inflation numbers mean that everyday expenses like filling up the gas tank or eating out are becoming increasingly costly. As the summer driving season gets underway, the 20% year-over-year increase in gas prices will be particularly felt by commuters and families planning road trips. The rise in prices for computer equipment and services, including restaurant meals and healthcare, will also have a direct impact on the local economy. With a significant portion of San Antonio's workforce employed in industries like healthcare and technology, the inflationary pressures on these sectors will be closely watched. As the Federal Reserve considers its next move on interest rates, San Antonio businesses and consumers will be waiting to see how the central bank's decisions will affect the local cost of living and the overall economic outlook for the city.
About this story
Original reporting by KSAT 12 (ABC affiliate) . The San Antonio 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) . Have a tip or correction? Contact our newsroom .
Category: government ·
Published: June 25, 2026 ·
Source: KSAT 12 (ABC affiliate) ·
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) and curated for The San Antonio readers.
Who reported this story? This story was reported by Christopher Rugaber, Associated Press at KSAT 12 (ABC affiliate). To learn more about how The San Antonio selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more government coverage from The San Antonio, or browse our daily briefing and topic hubs .
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