Airfare, gas, fuel oil spike as US inflation tops 4% for first time since April 2023

Inflation topped 4% for the first time in three years in May, driven by a surge in energy costs and other price pressures. The Bureau of Labor Statistics reported a 4.2% year-over-year increase for May, up from 2.4% earlier in the year amid the Iran War. Energy led gains, with gasoline up 40.5% and fuel oil up 58.9% from a year earlier. The average price for regular gasoline in May 2026 was $4.48 per gallon, up 9.2% from April and 42.2% from a year ago. In addition, airline fares rose 26.7% YoY, clothing 4.8%, while groceries posted only a 0.1% monthly uptick. Food costs were not a major contributor to the spike, as increases occurred in beverages, cereals and bakery products, and produce. The Iran conflict, now past the 100-day mark, continues to disrupt energy markets and prices.