U.S. CPI Accelerates to 4.2% in May as Energy Costs Rise

The U.S. Department of Labor said on Wednesday that the consumer price index rose 4.2% year over year in May, accelerating from 3.8% in the prior month and marking the highest annual increase since April 2023. According to Jin10, the data suggested that elevated energy costs linked to the conflict with Iran continued to add to price pressures. The report said Americans have been feeling the impact of higher oil prices since late February, after the United States and Israel launched attacks targeting Iran. It added that rising energy costs have weighed on consumer confidence. The report also said there were few signs that oil tankers would be able to secure sustained permission to pass through the Strait of Hormuz, indicating that supply pressures in global energy markets were expected to persist.