US inflation spikes to 3-year high in May as Iran war energy shock persists

AI Summary

US consumer inflation surged to a three-year high in May, rising to 4.2% year on year, driven largely by increased energy prices amid ongoing geopolitical tensions involving Iran. The inflation increase reflects broader economic impacts of the energy shock caused by the US-Israel conflict with Iran.

US consumer inflation surged to a fresh three-year high in May, according to official data released on Wednesday, as increased energy prices rippled through the world’s largest economy. The consumer price index (CPI) rose 4.2 per cent year on year, up from April’s 3.8 per cent figure, the US Bureau of Labour Statistics said. It was the highest reading since April 2023, according to official data, but in line with analyst expectations. The US-Israel war against Iran, launched in late February,...