Chip costs cited: Apple has raised prices on several Mac and iPad models, with increases reaching $200 or more on key devices such as MacBook Air, MacBook Pro and iPad Pro. The hikes are driven largely by surging memory and storage chip costs, which have risen sharply due to strong demand from AI data centers and ongoing global supply shortages. Apple says it previously absorbed these rising component expenses but can no longer sustain them, making price increases necessary while iPhone pricing remains unchanged for now. The Wall Street Journal has the full story.
Three-year high: U.S. inflation rose to a three-year high in May, reaching about 4.1%, driven largely by higher energy costs amid geopolitical tensions affecting oil prices. Core inflation also remained elevated, indicating persistent price pressures beyond food and fuel. Despite higher prices, consumer spending increased, but real purchasing power is weakening as inflation continues to outpace wage growth, complicating the Federal Reserve’s policy outlook. Bloomberg has the full story.
Mixed signals: New U.S. jobless claims fell to about 215,000, signaling that layoffs remain historically low even amid economic uncertainty. The labor market seems to be resilient, with hiring and overall employment holding up despite concerns like inflation, geopolitical tensions and corporate cost-cutting. However, there are mixed signals, including rising continuing claims and a slower hiring environment, suggesting it can take longer for unemployed workers to find new jobs even though layoffs are limited. The Associated Press has the full story.
