May’s annual inflation surge to 4.2% marks the third straight monthly increase, driven by energy costs and geopolitical tensions.
US annual inflation accelerated to 4.2% in May, the highest level in three years, as energy prices continued to climb. The increase follows a 3.8% rise in April and 3.3% in March, with the Iran war cited as a key driver of the upward trend.
Prior to the conflict, inflation stood at 2.4% in February. Energy costs accounted for 60% of the monthly increase in the consumer price index, while airline fares jumped 26.7% annually. Core CPI, excluding food and energy, rose 2.9%.
Gasoline prices averaged $4.15 per gallon, down slightly from last month but $1 higher than a year ago. The data underscores persistent price pressures ahead of the summer travel season.