Inflation shot past 4% in May for the first time in three years as higher energy costs amid the war in Iran weighed on prices – seeping into everything from food to airfares as Americans face a rising cost-of-living.

The Consumer Price Index rose 4.2% in May over the past 12 months, heating up from 3.8% in April, the Bureau of Labor Statistics said Wednesday – and those pressures are unlikely to let up anytime soon.

For the week ending June 5, a pound of Cosmic Crisp apples cost $2.37 on average – a 54.9% jump from $1.53 last year, according to the US Department of Agriculture’s most recently available data.

A pound of tomatoes cost $1.97 on average, up 21.6% from the previous year, while green bell peppers were $1.78 per pound, a 19.5% jump, according to the data.

“Once consumer prices rise, it takes time for this trend to reverse. The road back to an inflation rate near the Fed’s 2% target will not be immediate [and] is becoming more and more of a fantasy,” Skyler Weinand, chief investment officer at Regan Capital, said in a note Wednesday.

President Trump defended the numbers on Wednesday, arguing that prices will plummet as soon as the war with Iran ends and energy shipments normalize.

“No, I love it, the numbers were great,” Trump said when a reporter asked him about the CPI report issued earlier in the morning.

“You know what I really love? I love the inflation. You know why?” Trump said. “Because as soon as this war is over, you know I can say it now…you know we’ve been taking out millions of barrels of oil.”

The White House also touted some recent price drops that arrived last month, including dairy products and auto insurance, which fell 0.6% and 1.7%, respectively. While the overall dairy category fell, milk itself rose 2.2% in May.

According to USDA data, some items saw relief last week, like iceberg lettuce at $1.31, down 12.1% from last year – but raspberries jumped 9.2% to $3.10 a package, while a pound of oranges rose 10.2% to $1.51.

Americans are carrying more debt as they juggle rising costs, with the total credit card balance hitting $1.25 trillion in the first quarter of 2026 – and a 4.2% inflation rate means prices are outpacing real wage growth, which could worsen the issue.

National average gasoline prices hit $4.15 a gallon on Wednesday, according to AAA – a 33% increase from $3.12 a gallon last June as the Strait of Hormuz, a vital maritime route for global energy supplies, remained largely blockaded.

Airlines fares rose 2.7% in May – up 26.7% over the past 12 months – as jet fuel costs soared. Fuel is typically among the largest operating expenses for airlines, and has been an especially painful point for European airlines, which rely largely on imports.

Public transportation isn’t much better. Prices ticked up 0.3% in May, and are 16.7% higher than this time last year.

As in previous months since the US and Israel’s war with Iran began in February, energy costs accounted for the largest driver of inflation in May – but the core CPI, which excludes volatile food and energy prices and hit 2.9%, indicated those pressures are hitting other goods.

Shelter costs rose 0.3% in May. Rent payments also ticked up 0.4%, and are up 2.9% over the past 12 months.

Americans also faced higher medical care service costs, which rose 0.5%. Dental services, in particular, saw a huge 8.5% increase.

But prescription drug costs dropped 0.9%, and are down 2% over the past year.

In a bright spot for the economy, food prices jumped only 0.2% in May – less than many analysts had feared. Higher fuel costs are typically quick to seep into food prices, since groceries need to be transported by heavy trucks that run on diesel. 

However, food prices are still up 3.1% over the year – and certain items continued to climb in May.

Fresh fruit and vegetables are 6.7% higher over the year and continued to climb in May, led by a 32% rise in the price of tomatoes, a nearly 25% jump in lettuce and a 6.1% increase in citrus fruits over the past 12 months.

Coffee jumped 0.6%. The java drink is up 17.5% over the year as droughts have weighed on coffee bean harvests.

Beef and veal prices – which are up 12.9% this year – similarly skyrocketed as American ranchers suffered from record-low cattle herds. Prices saw some relief in May, falling 1.6%.

Apparel – a particularly tariff-sensitive category – is up 4.8% over the year, and ticked up 0.3% in May.

A robust jobs report released last week, which showed US employers added 172,000 jobs in May, combined with higher inflation makes central bankers unlikely to slash interest rates at their meeting next week.

More than 98% of traders expect the Fed to hold rates in the current 3.5% to 3.75% range at their June 17 meeting, according to CME FedWatch, which tracks 30-Day Fed Funds futures prices. 

Members of the Trump administration have tried to assuage Americans as consumer sentiment has dropped to record lows, saying prices will be quick to come down once the war is resolved and the strait in the Persian Gulf is reopened.

Some analysts have warned that even if the war ends soon, prices could take time to normalize – especially following damages to Middle Eastern energy facilities, which will keep supply lower for longer.