Consumers and U.S. workers are feeling the pinch of a wage growth rate that lags behind the rate of inflation.

A new report on Wednesday showed inflation rising 4.2 percent in May, marking its highest level in three years and underlining how hard the Iran war is hitting consumers. The Labor Department report is unwelcome news for President Trump and the GOP in an election year where affordability is the dominant issue.

Rising gas prices pushed inflation to its highest level in three years last month, a headache for the Federal Reserve and a potential political challenge for the Trump administration as midterm elections near.

A top Cabinet official squirmed before a congressional committee as he struggled to defend his boss’s ridiculous claim that he “loves” inflation. Chris Wright, President Donald Trump’s energy secretary,

The European Central Bank is set to hike interest rates Thursday for the first time since 2023 as the Iran war fuels inflation, despite concerns the move could hit growth in the struggling eurozone. "The last thing the eurozone needs is a further headwind in the form of higher interest rates to exacerbate the Iran war damage,

The Consumer Price Index rose last month at a 4.2% annual rate amid a spike in U.S. energy prices.

U.S. inflation accelerated for the third straight month in May, recording its highest annual increase since 2023. The Consumer Price Index, which measures the costs of goods and services across the U.

Prices rose 4.2% in May compared to a year earlier, according to data from the U.S. Bureau of Labor Statistics, which is the highest level in three years.