Inflation hits 4.2% as gasoline prices surge following U.S.-Iran conflict
By
Scott Horsley
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Summary
Inflation has surged to 4.2% year-over-year in May, the highest level in over three years, driven primarily by soaring gasoline prices following the U.S. and Israel's war with Iran. The Labor Department report shows prices rose 0.5% month-over-month, with energy costs accounting for over 60% of that increase. Meanwhile, average wages have only risen 3.4% over the past year, meaning workers' real spending power has declined.
Key quotes
· 3 pulledA report from the Labor Department on Wednesday showed consumer prices in May were up 4.2% from a year ago.
That's the biggest annual increase since April of 2023.
Prices rose 0.5% between April and May, with higher energy costs accounting for more than 60% of that monthly increase.
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