U.S. inflation climbed to a fresh three-year high in May, according to official data released Wednesday, as the economic fallout from U.S. President Donald Trump's Iran war poses him a key challenge in the upcoming midterm elections.
The consumer price index (CPI) rose 4.2% year-over-year, up from April's 3.8% figure, the U.S. Department of Labor said. It was the highest reading since April 2023, according to official data.
Rising gas prices pushed inflation to its highest level in three years, resulting in a headache for the Federal Reserve (Fed) and a potential political challenge for the Trump administration as midterm elections near.
On a monthly basis, prices rose 0.5% last month, after big gains of 0.6% in April and 0.9% in March.
Inflation had been cooling before 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. A key question is whether rising prices will spread more broadly through the economy.
