US consumer prices accelerated at their sharpest pace in more than three years during May, driven by surging energy costs linked to the ongoing conflict in Iran.
The Consumer Price Index climbed to a new peak, marking a significant reversal in the disinflation trend that had characterized the previous two years.
The repricing reflects the direct transmission of geopolitical risk into the consumer basket.
As tensions in the Strait of Hormuz persist, energy markets have passed higher costs through to gasoline and heating bills, which are now weighing heavily on the headline inflation figure.
This development underscores how external supply shocks can rapidly override domestic monetary policy progress.
For investors, the data point complicates the outlook for interest rates.