Rising prices are eating up pay raises for regular people, and the Middle East situation looks more likely to escalate than settle — bad news on both fronts.

• Yearly inflation came in at 3.5%, lower than expected because gas prices eased, but gas is already creeping back up and could top $4.
• The Fed says it has no patience for high inflation but gave no hint on its next move, while Trump claims prices are "way down."
• Pay raises are matching inflation exactly, so people aren't getting ahead, and grocery prices keep climbing.
• Credit card late payments have climbed to around 13%, near where they were during the 2008 financial crisis, as people lean on cards to keep up.
• Trump is talking up possible ground strikes in the Iran conflict and says a deal keeps falling apart, giving little sign of peace soon.

Outlook: Expect gas and grocery prices to stay high with no Fed rate relief signaled, and the Iran standoff to stay tense as ground-attack options get floated.