Consumer inflation in the United States increased at the fastest pace in three years as surging oil prices amid tensions with Iran weigh on global energy markets before the US Federal Reserve’s policy meeting next week.
Inflation rose by 0.5 percent in May compared with the prior month, following a 0.6 percent jump in April, according to the US Labor Department’s Bureau of Labor Statistics (BLS), and was 4.2 percent higher than this time last year.
The increase is largely driven by a surge in energy prices, which rose by 3.9 percent in May following a 3.8 percent increase the prior month.
Americans feel the pressure at the petrol pump, in particular. Petrol prices jumped 7 percent compared with a month ago and are more than 40 percent higher than this time last year.
US President Donald Trump on Wednesday appeared to embrace data showing inflation was up more than 4 percent.
Asked about US government data showing consumer inflation increased at its fastest pace in three years in May, and whether it could hobble his fellow Republicans just months before November’s midterm election, Trump said: “I love the inflation.”
