Inflation in the US climbed to 4.2% in May 2026, the highest reading in three years and a meaningful step up from 3.8% in April. The culprit is not a mystery: energy costs have gone through the roof, and the ripple effects are showing up everywhere from gas stations to grocery stores.
The good news, if you can call it that, arrived on June 24, when West Texas Intermediate crude dropped below $70 per barrel.
What drove prices higher
Energy inflation hit 23.5% year-over-year in May, according to the CPI report. Gasoline prices alone surged 40.5% compared to a year earlier.
The spike traces back to the ongoing US-Iran conflict, which rattled oil supply routes and sent energy markets into a sustained frenzy through the first half of 2026.
