U.S. inflation climbs to a three-year high in May, with the annual Consumer Price Index (CPI) rising to 4.2%, according to data released by the U.S. Department of Labor/Bureau of Labor Statistics. Multiple outlets report this is the highest inflation rate in about three years and comes after several months of increases. The rise is attributed largely to higher energy costs linked to the Iran war, including steep gasoline prices. Several accounts note that inflation has been edging up for consecutive months during the conflict and that energy price pressures are spreading through other goods and services.
While energy-driven price increases are the main factor, one report also distinguishes between headline inflation and “core” inflation, which excludes food and energy. Core inflation is described as rising more moderately (2.9% annually), indicating that the broader price picture is less influenced by energy than headline CPI. Other reports emphasize that the latest figure aligns with analyst expectations, even as it marks a clear acceleration in inflation compared with levels seen earlier in the year before the war began.
