The annual inflation rate increased to its highest point in three years as the cost of energy and other goods rose due to the Iran war, according to data released by the Department of Labor on Wednesday.
The consumer price index (CPI), a popular gauge of inflation, rose 4.2 percent over the past 12 months and 0.5 percent in May alone.
The CPI increase matched the Wall Street consensus and marks the first time that it has surpassed 4 percent since May, 2023, making it the highest rate since April of that year.
Energy prices rose 3.9 percent in May after having risen 3.8 percent in April and 10.9 percent in March, accounting for over 60 percent of the monthly all-items increase.
The Energy Information Administration reported that the average price for gas reached $4.49 in mid-May, compared to $4.09 in mid-April. In June, the national average has so far dropped to $4.15, according to AAA.
The price of fuel has kept increasing as peace talks between the U.S. and Iran drag out, likely threatened by the latest exchanges, which could threaten an already fragile two-month ceasefire.
The food index also saw an increase of 3.1 percent over the past year, with a 0.2 percent rise in May. All other items saw a nearly 3-percent increase in the last year after also rising by 0.2 percent in May.
Hellbound and Down 