Inflation in the U.S. has risen above 4% for the first time in over three years, driven by a spike in gasoline prices due to the war with Iran.
- Consumer prices in May were up 4.2% year-over-year, the largest increase since April 2023. - Energy costs accounted for more than 60% of the monthly CPI rise, with gas prices jumping over $1 per gallon.
- Average wages rose only 3.4%, meaning workers' real spending power has declined. - Core inflation (excluding food and energy) was 2.9%, and the Federal Reserve is unlikely to cut interest rates soon.
While gas prices have eased slightly amid hopes for a negotiated settlement, the national average remains $4.15 per gallon, significantly higher than pre-war levels.