Consumers and U.S. workers are feeling the pinch of a wage growth rate that lags behind the rate of inflation.

Inflation is likely to have increased for a third straight month in May as the war with Iran sent energy prices higher and ratcheted up pressure on U.S. consumers.

The Bureau of Labor Statistics’ Consumer Price Index for last month will be released at 8:30 a.m. ET Wednesday. Economists surveyed by Dow Jones expect it will show the annual rate of inflation hit 4.2%, well above the 2.4% level it hit before the war and its highest point since early 2023.

“High energy prices will again provide upward pressure, although potentially less than in the previous two months,” analysts at Lloyd’s Bank said.