No Signs of Slowdown in US Runaway Inflation Rattle Market Sentiment
Consumer prices (CPI index) in the US rose by 8.6% in May compared to the same month last year, according to data from the Department of Labor. This is the highest growth rate since December 1981. Thus, inflation has accelerated compared to 8.3% in April. Analysts polled by Bloomberg had expected consumer prices to rise 8.3% on average.
Energy prices jumped 34.6%, the highest since September 2005, from 30.3% in April, while gasoline prices doubled (up 106.7%) to a record high.
The cost of food rose by 10.1%, the growth rate exceeding 10% for the first time since the end of March 1981.
Prices for new cars rose by 12.6%, for used cars and trucks - by 16.1%.
The increase in consumer prices compared to the previous month in May amounted to 1% against 0.3% in April. Analysts' consensus forecast was for an increase of 0.7%.
Prices excluding the cost of food and energy (Core CPI index) last month increased by 6% in annual terms and by 0.6% in monthly terms. In April, the increase was 6.2% and 0.6%, respectively.
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