May CPI Surges to 4.2% on War-Driven Energy Price Spike

U.S. inflation accelerated sharply to 4.2% year over year in May, with energy costs accounting for over 60% of the increase after war-related disruptions to oil shipments. The print marks the highest reading in three years and follows April’s 3.8% rate, keeping the Federal Reserve on a cautious path with futures pricing a hold at the June FOMC. Political reaction intensified as Bernie Sanders criticized Donald Trump’s remark that he “loves inflation,” highlighting the burden on working families from elevated gasoline and grocery prices.