May CPI in the United States may hit a new high in over three years, with consumer confidence and purchasing power continuing to be eroded.

Economists predict that a key inflation index to be released on Wednesday will show that consumer prices in the United States rose to a three-year high in May. Mark Zandi, chief economist at Moody's Analytics, said that unlike the inflation caused by supply disruptions during the COVID-19 crisis, the recent surge in prices is mainly attributed to government policies, including the war in Iran. He said, "It's been almost five years since inflation last reached the Federal Reserve's target, and I think this has gradually eroded collective psychology, which is one of the reasons people feel so bad about the economy." According to a recent survey by CBS News, three-quarters of Americans say their income is not keeping pace with inflation. Economists say that the rise in energy prices in May may be the main reason for sustained inflation. Zandi said that besides energy costs, economists will also focus on the cost of goods and services on Wednesday to assess how higher fuel prices are affecting the economy. He said, "Not only have gasoline prices gone up, but diesel prices have also risen, pushing up the prices of all goods transported by truck, from groceries to Amazon packages. Now it's more expensive to fly because airlines have passed on the higher aviation fuel costs to passengers."