Inflation rises to a 3-year high on spiking gas prices, squeezing Americans financially– abcnews.com

WASHINGTON — Spiking gas prices pushed inflation to its highest level in three years last month, a headache for the Federal Reserve and a potential political challenge for the Trump administration as midterm elections near.

Consumer prices rose 4.2% in May from a year earlier, the Labor Department said Wednesday, up from 3.8% in April and the third straight increase. On a monthly basis, prices rose 0.5% last month, after big gains of 0.6% in April and 0.9% in March.

Rising inflation has soured many Americans on the economy, as the cost of gas, groceries, and other necessities hammer many Americans financially.

Excluding the volatile food and energy categories, core prices rose 2.9% in March from a year earlier, up from 2.8% in April. On a monthly basis, core prices increased a modest 0.2%.