Politics
US inflation spikes to 3-year high in May as Iran war energy shock persists
Key Points
US inflation spikes to 3-year high in May as Iran war energy shock persists The soaring costs are a major issue for American voters as they head to the midterm election in November 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...
US inflation spikes to 3-year high in May as Iran war energy shock persists
The soaring costs are a major issue for American voters as they head to the midterm election in November
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, has sent energy prices soaring after Tehran retaliated by virtually closing the vital Strait of Hormuz, through which roughly a fifth of global oil and gas normally pass.
US President Donald Trump has insisted that the price shock will be temporary and that a peace deal will be signed soon, but the soaring costs are a major issue for voters as they head to the midterm election in November.
Trump’s Republican Party will be aiming to maintain its control of both houses of Congress, but will face a stiff test as high prices batter US households.