NEW: Inflation Jumps to 4.2% — Highest in 3 Years

NEW: Inflation Jumps to 4.2% — Highest in 3 Years

The inflation numbers from Washington continue to worsen. Year-over-year inflation hit a three-year high of 4.2% in May, according to the Trump administration numbers released by the Department of Labor.

 

According to the Wall Street Journal, “That was the highest year-over-year print since April 2023 and a sign that high energy costs stemming from the conflict with Iran are continuing to push up price pressures.

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Yet the month-over-month rate of increase cooled slightly compared with April, a sign that the sharp rise in energy prices may have peaked and be softening.”

 

“Economists said May’s reading, which was in line with expectations, is likely to be the high-water mark in the recent run-up in inflation from this year’s energy-price shock. That’s assuming gasoline prices, which have ticked down in June, don’t accelerate again on renewed conflict in the Strait of Hormuz,” added the WSJ.

 

The impact is eroding paychecks and making homeownership more difficult as a rate cut becomes increasingly unlikely in the short run.