Annual inflation rose to a three-year-high of 4.2% in May, underscoring how elevated energy prices are rippling through the US economy, according to new data from the Bureau of Labor Statistics.

US prices in May rose at their fastest rate in three years, with inflation surging to 4.2%. The rise, from 3.8% a month earlier, was largely driven by rising energy costs, the Bureau of Labor Statistics (BLS) said.

Consumer prices rose 4.2% in May from a year earlier, the Labor Department said Wednesday, the third straight increase.

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.

Inflation shot past 4% in May for the first time in three years as higher energy costs amid the war in Iran weighed on prices – likely keeping the Federal Reserve on hold next week when it comes to interest rates.

US consumer inflation surged to a fresh three-year high in May, according to official data released on Wednesday, as increased energy prices rippled through the world’s largest economy. The consumer price index (CPI) rose 4.