Inflation rose to a 4.2% in May, as the Middle East conflict pushed fuel prices higher. The Bureau of Labor Statistics released the data Wednesday, matching a Bloomberg poll and surpassing April’s 3.8% rate. Core inflation, stripping food and energy, rose to 2.9% from 2.8%. Disapproval of President Trump stands at 68%, 10 points today.

Fuel costs jumped roughly 40% since the war began late February, AAA reports, dragging the overall price index. Energy accounts for more than 60% of the 0.5% monthly rise, while grocery prices for coffee, fruit and baked goods climbed. Dairy, meat and eggs eased slightly, easing some pressure for consumers across the country today.

Strong payroll growth in the latest employment report signals a still‑hot economy, raising fears that inflation may embed rather than fade. Schroders’ George Brown warns that energy will keep steering prices, but a broader set of costs could take the wheel. Investors price in a Fed rate hike by year‑end for bond markets worldwide today.

Federal Reserve officials flagged price growth, with some leaning toward higher rates. The dollar and Treasuries slipped little after the release, while the two‑year yield held at 4.12%. Stock futures eased a share of earlier losses, trading 0.5% lower. Market participants now weigh a quarter‑point Fed hike before year‑end for investors assessing risk exposure today.