U.S. inflation rose to 4.2% in May, the highest in three years, driven by surging energy costs.
Core inflation rose 2.9%. The report challenges the new Fed chair.
- Consumer prices increased 4.2% over the 12 months ending in May, up from 3%. - Gasoline prices rose 7% in May, contributing to a roughly 50% increase since January.
- Core inflation, excluding food and energy, rose 2.9% over the past year. - The report arrives ahead of the Federal Reserve's next policy meeting, posing an early challenge for new Fed Chair Kevin Warsh.