Energy Prices Drive U.S. Inflation To Three-Year High
Hormuz Shutdown Forces Malaysia to Overhaul Crude Supply Chain U.S.
inflation climbed above 4% for the first time in three years in May as rising energy costs tied to the Iran war pushed consumer costs sharply higher, with the Consumer Price Index rising 0.5% from April and 4.2% from a year earlier, according to data released Wednesday by the Bureau of Labor Statistics.
The annual rate matchedeconomists’ expectationsbut marked the highest inflation reading since April 2023 and an acceleration from the 3.8% rate recorded in April.
Energy was by far the largest contributor to the increase.
TheBLS reportedthat energy prices jumped 3.9% during the month and were up 23.5% from a year ago.
Energy accounted for roughly 60% of the monthly increase in consumer prices, underscoring the growing economic impact of oil’s rally following the outbreak of hostilities involving Iran.
The inflation report arrives as crude prices continue trading near$90 per barrel, with fears that consumer prices could remain high through the second half of 2026.
At the same time, the underlying inflation picture remained more subdued.
Core CPI, which excludes food and energy, rose 0.2% during the month and 2.9% annually.
Food prices increased 0.2%, while shelter costs rose 0.3%.
Core commodities prices actually declined 0.1%, suggesting that inflation pressures outside of energy arebeing contained.
Still, the data presents a challenge for the Federal Reserve ahead of next week’s meeting.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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