US Annual Inflation Hit 4.2% in May, Highest in Three Years
Higher energy costs drove more than 60% of the monthly increase, and gasoline prices climbed $1.17 a gallon after the Iran war began.
- Consumer prices rose 4.2% from a year earlier, the Labor Department said Wednesday, marking the third straight increase and the highest level in three years.
- Spiking gas prices pushed inflation higher after Iran's closure of the Strait of Hormuz choked off oil supplies, raising pump costs from about $4.04 to $4.49, according to the Energy Information Administration.
- Higher inflation has put new Fed Chair Kevin Warsh in a difficult spot, while diesel fuel costs lifted shipping rates, forcing companies like UPS and FedEx to add fuel surcharges.
- Wall Street investors expect the Federal Reserve to raise interest rates, as Treasury securities increased following a jobs report showing hiring accelerated, signaling inflation may remain elevated.
- Gas prices have since fallen to $4.16 on average nationwide, according to AAA, which could lead to a cooler inflation reading in June, though President Donald Trump's sweeping tariffs continue affecting costs.
93 Articles
93 Articles
The Toronto Star
US households, businesses stung by higher energy prices that have pushed inflation above 4%
WASHINGTON (AP) — Rising gas prices pushed inflation to its highest level in three years last month, a headache for the Federal Reserve and a potential political challenge for the Trump administration as midterm elections near.
The rate of inflation in the US rose to 4.2% in May, in a comparison of the same, corresponding to market expectations, according to the U.S. Department of Labor Statistics. The consumer price index has reached the highest level since April 2023, driven by energy costs, which increased by 23.5% in May, significantly above the 17.9% increase recorded in April, due to the energy shock caused by the conflict with Iran. The energy index represented …
Inflation rises to 4.2 percent in May, highest level in 3 years
The annual inflation rate increased to its highest point in three years as the cost of energy and other goods rose due to the Iran war, according to data released by the Department of Labor on Wednesday. The consumer price index (CPI), a popular gauge of inflation, rose 4.2 percent over the past 12 months [...]
US: CPI Inflation Accelerates to 4.2% in May on High Energy Prices
Get latest articles and stories on Business at LatestLY. The third straight month of price rise will make newly-appointed US Federal Reserve chairman Kevin Warsh's task difficult as he heads into his maiden policy meeting on June 16-17. Business News | US: CPI Inflation Accelerates to 4.2% in May on High Energy Prices.
Inflation in May was 4.2 percent as expected, driven primarily by high energy prices. US stock markets are taking another hit; tech stocks are out of fashion today as well.
Coverage Details
Bias Distribution
- 41% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
