Fed's preferred inflation gauge hits three-year high as gas prices surge, mortgage rates remain elevated

The economy, inflation and how those forces could impact the lives of Americans were front and center over the past week.

Trips to the grocery store or gas station are more painful than they were last year, and rising costs are impacting the decisions of both households and businesses.

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.

Part of that pressure is coming from artificial intelligence, which has sent demand for computer chips soaring.

The average long-term U.S. mortgage rate edged higher this week, staying close to 6.5%, where it's been the last six weeks.