U.S. Inflation Hits 13-Year High

The consumer price index (CPI), a measure of the price of consumer goods and services, increased by an annual rate of 5% last month, hitting its highest mark since August 2008, according to the U.S. Bureau of Labor Statistics.

As money printing and federal economic stimulus measures continue in the wake of the COVID-19 pandemic, this measure indicates that USD inflation is at its highest mark since the Great Recession, leading to palpable concern from investors.

“Fears over rising prices in the U.S. have gripped markets, with investors fearing that pent-up demand and supply chain bottlenecks would create inflationary pressures, forcing central bankers at the Federal Reserve to slow their stimulus program,” as The Guardian reported. “Core inflation, which strips out volatile items such as food and energy, leaped to the highest level since 1992. It rose 3.8% year-on-year, up from 3% in April.”

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