Inflationary pressure

Inflation in the US not only failed to fall as expected but continued to rise in May 2026. This is the highest inflation rate in the past three years, primarily due to sharply rising gasoline and energy costs. The escalating inflation raises concerns about prolonged price pressures on the world's largest economy.

Báo An Giang•30/06/2026

Biếm họa: ARCADIO ESQUIVEL

Cartoon: ARCADIO ESQUIVEL

According to data from the U.S. Department of Commerce, the Personal Consumption Expenditures (PCE) price index – a measure of inflation used by the Federal Reserve – rose 4.1% in May 2026 compared to the same period last year, the highest level since April 2023. Core inflation (excluding food and energy) increased 3.4% year-on-year, also reaching its peak since October 2023, indicating that price pressures continue to spread.

The main reason for the escalating inflation was the price of gasoline, which at one point rose to $4.50 per gallon (1 gallon = 3.78 liters) in May 2026. In addition, the strong wave of investment in artificial intelligence (AI) also caused computer components and technology equipment to increase in price, coupled with a sharp rise in the cost of essential services such as food, hotels, and healthcare .

You may also like

Britain aggressively increases its defense budget.On June 30, British Prime Minister Keir Starmer announced the Defence Investment Plan after months of delays, committing an additional £15 billion to defense spending to enhance the military's combat capabilities in the face of future security challenges.

Russia is betting $7 billion on building a system that could surpass Starlink.(Dan Tri Newspaper) - Russia is preparing to deploy dozens of domestically developed satellites this year to expand its low-orbit broadband network, directly competing with the US-based Starlink.

Transportation costs in some mountainous provinces have increased by up to 50%.In mountainous provinces such as Lai Chau, Dien Bien, and Lao Cai, freight rates have increased the most, with some routes seeing increases of up to 50% due to difficult road conditions and high fuel consumption. This is the latest finding from the Vietnam Road Administration regarding the recent increase in fuel prices, which has led transport businesses to adjust freight rates upwards, impacting logistics costs and the price of goods.

The fact that prices have consistently exceeded the 2% target for over five years is fueling increasing pessimism among Americans , as the cost of rent, food, and other necessities is now a heavy burden. Meanwhile, President Donald Trump has just refused to sign into law a housing assistance bill passed by Congress – a bill that was expected to boost construction and lower housing prices for citizens.

Persistent inflationary pressures have also altered the monetary policy decisions of the world's largest economy . Instead of the two expected interest rate cuts, the Fed has had to maintain high interest rates throughout the first six months of the year. Chief economist Mark Vitner of Piedmont Crescent Capital predicts that the Fed's next move under new Chairman Kevin Warsh is likely to be an interest rate hike. This monetary tightening scenario immediately put pressure on the US stock market last week, causing a significant sell-off in technology stocks.

Although gasoline prices have cooled down somewhat, the lingering anxieties of Americans about the burden of living costs from previous years are turning inflation into an extremely difficult political problem for the current administration.

According to Nhandan.vn

United States - Vietnam: Don't miss

Vietnam encourages US businesses to expand investment in high technology.On the morning of June 26th, at the Government Headquarters, Deputy Prime Minister Ho Quoc Dung received Mr. Jeff Place, Supply Chain Director of Coherent Group (USA). During the meeting, the Deputy Prime Minister affirmed that Vietnam encourages US businesses to expand investment, especially in high-tech, innovation, and semiconductor industries.

Encourage U.S. businesses to expand investment in high-tech sectors.Deputy Prime Minister Ho Quoc Dung said that Vietnam welcomes US businesses to continue expanding their operations in Vietnam, especially in high-tech industries and sectors with high added value.