Inflation Tops 4% as the Iran War Pushes Gas Up 40%
US inflation hit 4.2% in May, the highest reading since April 2023, and the third straight month of acceleration. The driver is the US-Israeli war with Iran. The closure of the Strait of Hormuz has disrupted Middle East oil supplies, and energy alone accounted for over 60% of the monthly CPI increase.This episode breaks down the May CPI report and what's behind the number. Energy prices are up 23.5% year over year. Gasoline is up 40.5%. Fuel oil is up 58.9%. Shelter costs accelerated again to 3.4% and food rose 3.1%. Core inflation (the Fed's preferred measure, which strips out food and…
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