Money

NY Times - U.S. inflation accelerated for a third-straight month in May amid a stalemate in negotiations to end the war with Iran, adding to the price pressures confronting consumers.

The Consumer Price Index report rose 4.2 percent in May from a year earlier, new data from the Bureau of Labor Statistics showed on Wednesday. That is up from a 2.4 percent annual increase before the conflict in the Middle East started in February and is the fastest pace since April 2023. Over the course of the month, overall prices jumped 0.5 percent.

Energy prices drove the bulk of the increase in May, rising 3.9 percent over the month. Once those were stripped out alongside food prices, the “core” index rose 2.9 percent on a year-over-year basis. Core prices rose 0.2 percent for the month, a 0.2 percentage point decrease from April’s monthly rate.

Energy costs have been spilling into categories where they make up a large chunk of the ultimate price tag, including food and airline fares, which rose 2.7 percent in May and are up 26.7 percent since this time last year. Hotel rates also increased 0.5 percent, in a possible indication of impact from the World Cup, although the hospitality industry has been disappointed in demand for rooms.