US inflation hits 4.2% in May as Trump’s Middle East conflict drives up prices - business live

US inflation jumped to an annual rate of 4.2% in May, the third consecutive monthly increase since the start of the Iran war and a three-year high, as Americans continue to face steep oil prices.

Prices have increased sharply over the past several months, rising at an annual rate of 3.3% in March before going up to 3.8% in April. In February, before the conflict began, inflation was at 2.4%.

Energy prices were once again responsible for the increase in the consumer price index, according to new data from the Bureau of Labor Statistics, accounting for 60% of the overall monthly increases.

Ministers are expected to drop some planned tariffs on foreign steel after UK manufacturers warned the measures would significantly increase their costs.

Representatives of the Department for Business and Trade are meeting leaders of steel trading business groups on Wednesday and Thursday with a view to finalising details of a reprieve for certain industries.

WH Smith has issued a profit warning after shopper numbers at its stores in US airports fell as a result of the war in the Middle East.

The retailer, which operates 1,200 outlets globally in airports, railway stations and hospitals, also announced plans to raise about £100m to strengthen its balance sheet, pay down debt, invest in technology and shut down unprofitable stores after “a downturn in trading conditions”.

The boss of the pub and hotel chain Fuller’s has said that the evening kick-off times of World Cup matches will provide a double-hit of business through the peak summer period, as the group gets “garden-ready” for fans before the tournament.

Simon Emeny, the chief executive of Fuller, Smith & Turner, said there had been strong advance bookings for the World Cup and that it had spruced up garden areas across its 337 pubs, hotels and inns to cater for a bumper summer.