The annual inflation rate climbed to its highest level in three years in May, driven by a sharp rise in energy and other goods prices linked to the ongoing conflict with Iran, according to data released Wednesday by the Department of Labor.
The consumer price index, a key measure of inflation, rose 4.2% over the past 12 months, with a 0.5% monthly increase in May alone, the agency reported.
Energy prices were the primary culprit, soaring 3.9% in May following a 3.8% jump in April and a massive 10.9% spike in March. These increases accounted for more than 60% of the overall monthly rise in prices.
Fuel costs continue to climb as diplomatic efforts between Washington and Tehran remain stalled. Peace talks have dragged on, and recent exchanges have threatened a fragile two-month ceasefire, keeping energy markets on edge.
The inflation surge comes as President Trump escalates rhetoric against Iran, adding to uncertainty over energy supplies. Analysts warn that further escalation could push prices even higher, squeezing consumers and businesses alike.
This is a developing story. Check back for updates.
