Rising Inflation in May Driven by Energy Costs amid Iran Conflict

In May, inflation reached levels not seen in three years, largely due to escalating energy costs linked to the ongoing conflict with Iran, now in its fourth month. Consumer prices rose 4.2% compared to a year ago, based on the Bureau of Labor Statistics’ latest report. This marks the largest 12-month increase since April 2023. Despite this, inflation slightly eased month-over-month, with prices increasing by 0.5% in May, compared to 0.6% in April.

Energy costs have significantly contributed to recent price hikes. The energy index accounted for over 60% of the monthly increase. High energy prices are a consequence of the Iran war. The Islamic Republic has blocked the Strait of Hormuz amid conflicts with the U.S., Israel, and Gulf States, throttling global oil and gas supply. In response, the U.S. has blocked Iranian ports and taken action against tankers attempting to pass through the strait, further restricting fuel flow.

These factors have squeezed U.S. oil, diesel, and gas supplies, causing costs to climb. Gas prices in May exceeded $4.50 per gallon nationwide, and electricity costs have reached new highs. Additionally, slight increases in food and shelter costs contributed to May’s inflation.

The Tribune tracks 11 common items for Americans: eggs, milk, bread, bananas, oranges, tomatoes, chicken, ground beef, gasoline, electricity, and natural gas. This tracker updates monthly using data from the U.S. Bureau of Labor Statistics. To view average U.S. prices for specific items, select an option from the dropdown list below.

Eggs: Eggs have become affordable. Prices have dropped steadily since March 2025 after a bird flu outbreak disrupted supply. A dozen large Grade A eggs now costs $2.19, down 6 cents from April.

Milk: The cost of milk continues to increase. In May, a gallon of whole milk rose by 8 cents to $4.22, marking a nearly 5% rise compared to the previous year.

Bread: Bread prices experienced a modest decrease of 4 cents from April. The current national average is $1.83 per pound.

Bananas: Banana prices remained stable at $0.65 per pound, a consistent range for the past year.

Oranges: Orange prices increased by 2.5% in May, reflective of seasonal trends. Prices typically rise until early fall. Currently, a pound of navel oranges costs $1.54.

Tomatoes: Tomato prices dropped 20 cents from April, now at $2.49 per pound. Prices are higher than usual due to tariffs on Mexican-grown tomatoes, which drove a 40% increase in retail prices.

Chicken: The price of chicken showed little change, rising only 1 cent in May to $2.04 per pound.

Ground Beef: Ground beef prices fell 20 cents from April’s record high, now $6.72 per pound. Despite this reduction, prices remain the second highest in nearly 50 years due to decreased cattle inventory.

Electricity: Electricity prices are at a record high of 20 cents per kilowatt-hour. This represents a 9.5% increase since early 2025, adding approximately $15 to average monthly bills.

Gasoline: The average gasoline price rose by 40 cents in May, now $4.65 per gallon. The Iran conflict has disrupted oil distribution, leading to these increases.

Natural Gas: In contrast to other energy sources, natural gas prices in the U.S. have remained stable due to high production and low seasonal demand. While the price has risen 8% since early 2025, it remains manageable for most Americans at $1.68 per therm.