US consumer prices accelerated at their fastest pace in more than three years during May, with the Consumer Price Index climbing to a new peak as the ongoing conflict in Iran continued to drive up energy costs.
The latest data showed the annual inflation rate at 4.2%, a three-year high that underscores the persistent pressure on American households and the Federal Reserve's ability to return prices to target.
The fresh inflation print arrives amid a volatile macro backdrop.
In April, inflation had already surged to 3.8%, marking the highest level in nearly three years.
The May reading confirms that the upward trajectory is not a statistical blip but a sustained trend, fueled largely by escalating energy costs linked to the geopolitical tensions in the Middle East.
This persistent price pressure complicates the path for monetary policy, as the central bank navigates between supporting growth and anchoring inflation expectations.