US inflation increased further in May, breaking above 4.0 percent for the first time in three years as the Middle East conflict boosted energy prices, and potentially drawing the Federal Reserve closer to raising interest rates this year. The personal consumption expenditures price index surged 4.1 percent in the 12 months through May, the largest increase and first reading above 4.0 percent since April 2023, the Commerce Department's Bureau of Economic Analysis said on Thursday. PCE inflation rose by an unrevised 3.8 percent in April. Economists polled by Reuters had forecast PCE inflation advancing 4.1 percent. The ... (full story)