Report. The consumer price index (CPI) in the United States rose to an annual rate of 8.6% in May, its highest level since December 1981.
Excluding volatile food and energy prices, the so-called core CPI rose 6%, the Bureau of Labor Statistics (BLS) said on Friday. This rate exceeds Wall Street’s estimate of 5.9%.
On a monthly basis, headline CPI rose 1% and core CPI 0.6%.
+ Rampant inflation shows “no signs of letting up” +
Energy prices climbed 34.6% compared to May 2021, while food prices jumped 10.1% over this period. This is the first annual increase of 10% or more in these indicators for more than 40 years, the BLS observed.
Airline fares rose 37.8%, while new vehicle prices jumped 12.6% and used vehicle prices jumped 16.1% year-on-year.
Gasoline prices are poised to hit a national average of $5 a gallon as millions of Americans prepare to travel for the summer vacation.
Galloping inflation, which shows no signs of letting up, should encourage the Federal Reserve to continue its policy of aggressively raising interest rates.
Rising prices have become the main domestic concern of the Biden administration, which fears that unhappiness among American consumers might lead to a Republican landslide in the midterm elections next November.
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