Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Consumer prices jumped 5% in May, the fastest pace since the summer of 2008.

Consumer prices jumped 5% in May, the fastest pace since the summer of 2008.



Consumer prices in May accelerated at the fastest pace in nearly 13 years as inflationary pressures continued to rise in the US economy, the Department of Labor said on Thursday.

The consumer price index, which is a basket of food, energy, groceries, housing costs and sales of a wide range of goods, has risen 5% from a year ago. Economists surveyed by the Dow Jones expected growth of 4.7%.

The readings represent the largest increase in the CPI since the 5.3% increase in August 2008, just before the worst of the financial crisis sent the US a spiral into the worst recession it has seen since the Great Depression.

A separate indicator, which excludes volatile food and energy prices, rose 3.8%, compared to the Dow Jones estimate of 3.5% for so-called core inflation. This was the fastest pace since May 1

992.

Another report released on Thursday showed that unemployment claims for the week ending June 5 were 376,000. The estimate was 370,000. The total is still the lowest since the pandemic era.

However, investors remain strongly focused on inflation, which has not been a major threat to the US economy since the early 1980s.

On a monthly basis, the main CPI increased by 0.8%, while the main one increased by 0.7%. The score was 0.5% for both indications.

Although inflation is well above anything seen since the financial crisis, the Federal Reserve largely ignores the figures. Central bank officials believe the current growth is due to temporary factors that will weaken as the year progresses.

Therefore, market participants usually do not expect to see the Federal Reserve react to the latest figures when the Federal Open Market Commission meets next week.

Markets largely backed away from Thursday’s inflation report, with stock markets futures showing open-ended gains, although government bond yields rose. The reference 10-year treasury has been trading for the last time at nearly 1.52%.

Prices of used cars and trucks continued to rise higher, rising by 7.3% during the month and 29.7% over the last 12 months. However, the energy index for the month was almost equal, despite the huge accumulation of gasoline prices this year, while the food index repeated its April rise of 0.4%.

The gasoline index has risen by 56.2% in the last year, which is part of a total 28.5% increase in energy over the period. Food prices remained relatively low, rising 2.2% over the 12-month period.

This is current news. Please check here again for updates.

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