US inflation hit 4.2% in May, highest in 3 years

US consumer prices rose 4.2% in May from a year earlier, the fastest annual pace since April 2023, as gasoline costs jumped after the war with Iran disrupted oil flows through the Strait of Hormuz. The Labor Department said prices increased 0.5% from April, with energy accounting for more than 60% of the monthly gain. Core inflation, which excludes food and energy, rose 2.9% over 12 months. Average wages increased 3.4% over the past year, trailing inflation. Airfares were about 27% higher than a year earlier, while grocery prices were little changed in May. Gasoline prices have eased recently but were still about $4.15 a gallon nationwide, according to AAA.