US inflation rises to highest level in 3 years
Inflation across the US surged in May to the highest level since early 2023, as fuel costs related to the US-Iran war continue to impact the broader economy. The Consumer Price Index (CPI) reached 4.2% for May, rising from 3.8% in the month prior, according to a report from the Bureau of Labor Statistics (BLS) Surging Energy prices due to the closure of the Strait of Hormuz drove the majority of the increase, rising 3.9% over the month. According to the BLS report, energy prices accounted for more than 60% of the monthly CPI increase, with gasoline prices jumping 40.5% compared to last year. Rising energy costs have also affected other categories where it accounts for a large portion of the overall cost, including airline fares, which are up 27% compared with last year. Chief economist at Navy Federal Credit Union, Heather Long, said the “frustration for many Americans is that so many of the basics are up in price right now.” Food at home, which accounts for grocery costs, rose 2.7% from a year earlier. Electricity prices increased by 0.6% in May, contributing to a 5.9% rise over the last 12 months. Rising inflation comes as wage growth is falling. For the second month in a row, inflation surpassed wage growth, which was tracking at 3.4% in the most recent jobs report.
2026-06-11T12:42:18Z
