Rising gas prices pushed inflation to its highest level in three years last month, a headache for the Federal Reserve and a potential political challenge for the Trump administration as midterm elections near. New data showed Wednesday that consumer prices rose 4.2% in May from a year earlier, the third straight monthly increase. Prices have now risen faster than wages for several months. Families are dipping into savings to maintain their spending, and more people are falling behind on their credit card bills. Large retailers say they have also noticed changes in customer behavior, like buying smaller amounts of gas during visits to the pump.

The average long-term U.S. mortgage rate eased this week from its highest level in nine months, welcome relief for prospective homebuyers. Mortgage buyer Freddie Mac said Thursday that the benchmark 30-year fixed rate mortgage rate fell to 6.48% from 6.53% last week. The average rate remains below 6.85%, where it was a year ago. When mortgage rates decline they give homebuyers more purchasing power. Mortgage rates are influenced by several factors, from the Federal Reserve's interest rate policy decisions to bond market investors' expectations for the economy and inflation.