Consumer prices in the U.S. rose by 4.2% annually in May, marking the highest inflation rate in the last three years. This increase has been significantly influenced by the ongoing Iran war, which has led to spikes in energy and gas prices. Economists highlighted that the inflation rate is expected to surpass the 4% mark for the first time since 2023, creating affordability challenges for consumers. The rise in inflation has fuelled discussions about potential actions from the Federal Reserve, as the core inflation rate remains under scrutiny. As prices continue to soar, market participants are bracing for the implications of these economic conditions.