Inflation likely reached 3-year high last month as Iran war spikes gas prices

Consumer prices in the US probably jumped in May for the third straight month, heightening concerns for the inflation fighters at the Federal Reserve and underscoring the threat that rising costs pose for the Trump administration as midterm elections near. This was reported by Qazaqyia.kz citing Associated Press.

Inflation is expected to reach 4.2% in May from a year earlier when the Labor Department reports last month's figures Wednesday, according to a survey of economists by data provider FactSet. The annual increase would be up from the 3.8% reading in April. On a monthly basis, prices are forecast to have risen a hefty 0.5%, slightly below the 0.6% increase in April.

Inflation had been cooling before President Donald Trump imposed sweeping tariffs in April 2025, which lifted the costs of many goods. Prices have since surged after the Iran war made oil and gas more expensive, making affordability a key political issue.