U.S. inflation hits three-year high as consumer prices rise 4.2%; Musk becomes first trillionaire

Trips to the grocery store or gas station are more painful than they were last year, and rising costs are impacting the decisions of both households and businesses.

Rising gas prices pushed inflation to its highest level in three years, new data showed this week, a headache for the Federal Reserve and a potential political challenge for the Trump administration as midterm elections near.

The Labor Department says consumer prices rose 4.2% in May from a year earlier, up from 3.8% in April and the third straight monthly increase.

U.S. producer prices, inflation measured before it gets to consumers, climbed last month at the fastest pace since November 2022, fueled by a surge in energy prices after the start of the Iran war.

That didn't slow down U.S. markets, which notched another winning week.