Inflation, as measured by the Consumer Price Index, is expected to run above 4% for the first time in three years because of the Iran war’s oil price shock.

U.S. producer prices increased more than expected in May, leading to the largest annual gain in 3-1/2 years as the Middle East conflict boosted the

Inflation has surged since the start of the Iran war, and Americans have come to expect that prices will only continue to rise over the next year.

US businesses’ input costs are rising rapidly as the Iran war’s oil shock continues to ripple through the economy.

By Lucia Mutikani WASHINGTON, June 10 (Reuters) - U.S. consumer inflation increased at its fastest pace in three years in May, boosted by surging prices for energy products amid the Middle East conflict,

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.

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

For the rest of 2026, models from forecasting companies like Trading Economics anticipate an inflation rate of about 3.5% through the middle of the year. After that, it may decline to around 3%.

By Lucia Mutikani WASHINGTON, June 10 (Reuters) - U.S. consumer inflation likely increased at its fastest pace in three years in May as the Middle East conflict raised prices of energy products, which would provide more ammunition for the Federal Reserve to keep interest rates unchanged this year.

Bitcoin rose after the latest US inflation report, with traders focusing on softer underlying inflation despite headline CPI remaining elevated. US headline inflation came in