Consumer prices jumped in May for the third straight month, with annual inflation accelerating to 4.2%. According to the Bureau of Labor Statistics report released Wednesday, this represents the fastest inflation rate in more than three years.
The surge was driven largely by higher energy costs and a spike in gasoline prices following the launch of a war on Iran by the United States and Israel. Consumers are increasingly feeling the strain of the conflict as rising prices continue to weigh on household budgets.
These developments come as Americans have been battered by years of higher-than-expected inflation. The current trend heightens concerns for inflation fighters at the Federal Reserve and clouds the outlook for interest rates.
Additionally, the rising costs pose a threat to the Trump administration as midterm elections near.