Rio Times Global Economy Briefing
The Big Three
Inflation hit a three-year high. US consumer prices rose 4.2% over the year in May, the fastest since 2023, with energy alone responsible for more than 60% of the monthly increase.
Stocks tumbled. The Dow fell nearly 953 points and dropped back below 50,000 after President Trump warned that Iran would “pay the price” and pledged hard strikes.
But core prices cooled. Stripping out food and energy, inflation rose just 0.2% on the month — below expectations — a sign the surge is about oil, not the broader economy.
