The annual inflation rate reached 4.2% for May, according to the latest monthly Consumer Price Index report from the U.S. Bureau of Labor Statistics (BLS). That was up from 3.9% in April. The figures come from comparing overall prices in the previous month to what they were a year before. The May rate was the highest inflation since April 2023.
The biggest factor in the recent surge is the explosion in petroleum prices that followed the United States’ and Israel’s attack on Iran. BLS said energy cost increases accounted for 60% of the year-over-year increase in inflation. Secondary effects (prices of goods rising due to fuel cost increases) accounted for some of the remainder.
As of June 30, the average price of regular gas was $3.85 a gallon, up from $2.98 before the war.
