Inflation hits 3-year high, highlighting affordability challenge for Americans [View all]

https://apnews.com/article/consumer-prices-inflation-war-gas-878f6759c93fcb078aeefffe19d4dfa5

Inflation hits 3-year high, highlighting affordability challenge for Americans
By CHRISTOPHER RUGABER
Updated 8:31 AM CDT, June 10, 2026

WASHINGTON (AP) — Rising gas prices pushed inflation to its highest level in three years last month, a headache for the Federal Reserve and a potential political challenge for the Trump administration as midterm elections near.

Consumer prices rose 4.2% in May from a year earlier, the Labor Department said Wednesday, up from 3.8% in April and the third straight increase. 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 President Donald 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.

More expensive diesel fuel has lifted shipping costs, with companies like UPS and FedEx adding fuel surcharges in the past couple of months. That is likely to push up grocery prices, which jumped 0.7% in April and are 2.9% higher than a year ago.

...