Consumer prices rose 4.1% year‑over‑year in May, the largest annual increase since April 2023, the U.S. Commerce Department reported on Thursday. On a monthly basis, prices increased 0.4%, matching April’s rise and down from 0.7% in March. The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures price index, also climbed to a three‑year high in May. Gas prices peaked during the month, contributing to the overall increase. The report noted that rising costs could pose political challenges for Donald Trump and his party as the midterm elections approach. The Commerce Department said the year‑over‑year rise marks the biggest increase since April 2023. The monthly increase of 0.4% was lower than the 0.7% rise recorded in March. The Fed has not yet announced a change in its policy stance. The Fed’s next policy meeting will review the inflation data, and the outcome of the midterm elections may shape future economic policy.