{"id":4362,"date":"2026-06-10T19:06:43","date_gmt":"2026-06-10T19:06:43","guid":{"rendered":"https:\/\/usglobalnews.com\/2026\/06\/10\/inflation-tops-4-for-the-first-time-in-3-years-on-spike-in-gasoline-prices\/"},"modified":"2026-06-10T19:06:43","modified_gmt":"2026-06-10T19:06:43","slug":"inflation-tops-4-for-the-first-time-in-3-years-on-spike-in-gasoline-prices","status":"publish","type":"post","link":"https:\/\/www.usglobalnews.com\/?p=4362","title":{"rendered":"Inflation tops 4% for the first time in 3 years on spike in gasoline prices"},"content":{"rendered":"
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Inflation tops 4% for the first time in 3 years on spike in gasoline prices<\/h1>\n<\/div>\n

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\n Energy costs accounted for more than 60% of the monthly rise in the consumer price index in May.
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Soaring gasoline prices, triggered by the U.S. war with Iran, have pushed inflation to its highest level in more than three years. <\/p>\n

A report from the Labor Department<\/a> on Wednesday showed consumer prices in May were up 4.2% from a year ago. That’s the biggest annual increase since April of 2023. By contrast, the Labor Department says average wages have risen only 3.4% over the last year, so workers’ real spending power has declined. <\/p>\n

Prices rose 0.5% between April and May, with higher energy costs accounting for more than 60% of that monthly increase. Gas prices have jumped by well over a dollar a gallon since the war began, strangling shipping traffic in the Strait of Hormuz \u2014 a critical pathway for much of the world’s oil supply.<\/p>\n

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This is how close American households are to the financial edge <\/a><\/h3>\n<\/p><\/div>\n

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Higher fuel costs also pushed up airfares in May. Airline tickets cost about 27% more than they did a year ago.<\/p>\n

Grocery prices showed little change during the month, rising just 0.1%. Stripping out volatile food and energy prices, “core inflation” was 2.9% for the 12 months ending in May, a slightly larger annual increase than the previous month.<\/p>\n

Stubborn inflation makes it less likely the Federal Reserve will cut interest rates anytime soon, especially since the U.S. job market appears to be stabilizing<\/a>. Employers added 172,000 jobs last month. <\/p>\n

Gasoline prices have eased in recent days, amid hopes of a possible negotiated settlement between the U.S. and Iran. But with an average price of $4.15 a gallon nationwide, pump prices are still about $1.17 higher than they were before the war began, according to AAA. <\/p>\n<\/div>\n

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