How is the Iran war affecting the prices we pay? Well, the latest consumer price index offers some clues. Inflation rose for *** third straight month, up 4.2% in May compared to *** year ago. This is also the first time in three years where we’ve surpassed 4%. Energy prices are driving much of that increase, so gas prices jumped 7% in the last month. They’re up 40.5% from *** year. fuel oil rose 3.8% in May. It’s nearly 59% higher than it was *** year ago. We’re also seeing some ripple effects when you look at those detailed categories. Airline fares, for example, are up 26.7% compared to this time last year, while fresh fruits and vegetables are up 6.7% from last year. So what does all of that mean for consumers? Well, the biggest Impact is showing up in people’s energy, transportation, and travel costs. But economists also look at what’s known as core inflation, which excludes those volatile food and energy prices. You can see that that measure rose much more slowly. The question now is whether those higher prices mostly stay at the gas pump or if they start showing up in more places. That’s something economists will closely be watching.
Airfare, gas, fuel oil spike as US inflation tops 4% for first time since April 2023
Three months into the Iran War, the Consumer Price Index rose to 4.2%
Inflation surpassed 4% for the first time in three years in May, a report by the U.S. Bureau of Labor Statistics (BLS) showed. The 4.2% year-over-year change in May is a sharp increase from the 2.4% inflation rate before the start of the U.S. war with Iran. The Iran War, which crossed the 100-day mark on Tuesday, continues to disrupt global energy supplies and drive up prices. Energy saw the biggest increases among the goods surveyed by the BLS. BLS data showed gasoline increased 40.5% year-over-year, while fuel oil rose 58.9% from a year earlier. In May 2026, the average price for regular motor gasoline was $4.48 per gallon. This is up 9.2% from April 2026 and up 42.2% from the previous year, according to the Bureau of Transportation Statistics. Aside from energy, many goods and services saw prices rise last month. Airline fares rose 26.7% year-over-year, and so did clothing costs, which saw a 4.8% annual change. Food costs, however, aren’t contributing to the spike. Grocery prices inched up 0.1% from the previous month, with increases in the indices for nonalcoholic beverages, cereals and bakery products and fruits and vegetables. PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiPiFmdW5jdGlvbigpeyJ1c2Ugc3RyaWN0Ijt3aW5kb3cuYWRkRXZlbnRMaXN0ZW5lcigibWVzc2FnZSIsKGZ1bmN0aW9uKGUpe2lmKHZvaWQgMCE9PWUuZGF0YVsiZGF0YXdyYXBwZXItaGVpZ2h0Il0pe3ZhciB0PWRvY3VtZW50LnF1ZXJ5U2VsZWN0b3JBbGwoImlmcmFtZSIpO2Zvcih2YXIgYSBpbiBlLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdKWZvcih2YXIgcj0wO3I8dC5sZW5ndGg7cisrKXtpZih0W3JdLmNvbnRlbnRXaW5kb3c9PT1lLnNvdXJjZSl0W3JdLnN0eWxlLmhlaWdodD1lLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdW2FdKyJweCJ9fX0pKX0oKTs8L3NjcmlwdD4K
Inflation surpassed 4% for the first time in three years in May, a report by the U.S. Bureau of Labor Statistics (BLS) showed. The 4.2% year-over-year change in May is a sharp increase from the 2.4% inflation rate before the start of the U.S. war with Iran.
The Iran War, which crossed the 100-day mark on Tuesday, continues to disrupt global energy supplies and drive up prices. Energy saw the biggest increases among the goods surveyed by the BLS.
BLS data showed gasoline increased 40.5% year-over-year, while fuel oil rose 58.9% from a year earlier.
In May 2026, the average price for regular motor gasoline was $4.48 per gallon. This is up 9.2% from April 2026 and up 42.2% from the previous year, according to the Bureau of Transportation Statistics.
Aside from energy, many goods and services saw prices rise last month. Airline fares rose 26.7% year-over-year, and so did clothing costs, which saw a 4.8% annual change.
Food costs, however, aren’t contributing to the spike. Grocery prices inched up 0.1% from the previous month, with increases in the indices for nonalcoholic beverages, cereals and bakery products and fruits and vegetables.
