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As Iran war drags on, spiking energy prices send inflation to 3-year high

As Iran war drags on, spiking energy prices send inflation to 3-year high

Summary

Rising energy prices caused inflation to reach its highest point in three years in May, increasing by 4.2% compared to the previous year. The cost of energy made up over 60% of this increase, while inflation without food and energy prices rose by 2.9%.

Key Facts

  • Inflation in May rose 4.2% compared to the same month last year.
  • Energy prices were responsible for more than 60% of the inflation increase.
  • Core inflation, which does not include food and energy costs because they change often, increased by 2.9%.
  • The Labor Department provided the inflation data.
  • Rising energy costs are partially linked to ongoing conflicts in Iran.
  • Geoff Bennett and Roben Farzad discussed the inflation report on Full Disclosure.
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