US inflation hits 3.3%

The Labor Department's report highlights the severe impact of Middle Eastern energy shocks on American households, with petrol prices remaining above $4 per gallon despite a temporary ceasefire.

While 'core' inflation increased only modestly, the overall cost of living has been significantly impacted by the effective closure of the Strait of Hormuz.

Economists warn that these figures may diminish the likelihood of Federal Reserve interest rate cuts later this year.

The rising costs are also fueling record-low consumer sentiment as paychecks fail to keep pace with the price of essential goods.