Inflation rises to a 3-year high on spiking gas prices, highlighting affordability challenges

Rising gas prices due to Iran's closure of the Strait of Hormuz pushed inflation to a 3-year high of 4.2% in May, challenging the Federal Reserve and Trump administration as they consider rate hikes to address affordability concerns. The Labor Department reported annual consumer price increases, with energy costs and shipping surcharges contributing to broader economic pressures.