Inflation dips, but is it enough?

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Inflation, which had been running hotter all year, finally dipped in April, but it may not be enough to convince the Federal Reserve to cut interest rates in the next couple of months.

Overall prices increased 3.4% from a year earlier, down from 3.5% in March, according to the Labor Department’s consumer price index, a gauge of goods and services costs throughout the economy. On a monthly basis, costs rose 0.3%, below the 0.4% rise the previous month but above the 0.1% to 0.2% readings that prevailed last fall. Grocery and used car prices offset another rise in rent and gasoline.

Social Security COLA estimate rises but Medicare costs do, too

The latest estimate of Social Security's cost-of-living adjustment for 2025 rose to 3.2% after the government reported that April inflation was in line with economists' forecasts, new calculations showed Wednesday.

But the Medicare Trustee report released last week forecasts Part B premiums would climb by $10.30 a month in 2025 to $185.00. That's an increase of 5.9% from $174.70 in 2024. COLA doesn't factor in Medicare Part B premium increases.

"Part B premiums are one of the fastest growing costs in retirement, and those premiums are deducted directly from Social Security benefits," said Mary Johnson, a retired Social Security and Medicare policy analyst for the nonprofit Senior Citizens League, who still tracks the data.

McDonald's fights inflation with $5 meal

The $5 meal deal will reportedly offer a choice of a McChicken, McDouble or four-piece chicken McNuggets with fries and a drink.

"Consumers continue to be even more discriminating with every dollar that they spend as they face elevated prices in their day-to-day spending, which is putting pressure on the industry," Chief Executive Officer Chris Kempczinski said. "It's imperative that we continue to keep affordability at the forefront for our customers."

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