Rising prices fan US inflation fears

Business | Victor Zhong 11 Jun 2021

Prices paid by US consumers rose in May by more than forecast, extending a months-long buildup in inflation that risks becoming more established as the economy strengthens.

The consumer price index climbed 0.6 percent from the prior month after a 0.8 percent jump in April that was the largest since 2009. Excluding the volatile food and energy components, the so-called core CPI rose by a larger-than-forecast 0.7 percent.

Compared with the same month a year ago, the CPI jumped 5 percent, the largest annual gain since August 2008, though the figure remains distorted by the base effect. The comparison to the pandemic-depressed index in May 2020 makes year-over-year inflation appear stronger.

The core measure rose 3.8 percent from 12 months ago, the most since 1992.

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