Washington, Jun 10, 2022 (AFP) – Inflation in the US regained momentum in May on the CPI consumer price index, which reached 8.6% in 12 months, the highest result since December 1981. The Department of Labor released it this Friday (10).
Compared to April, the price increase was 1.0%, while the increase between March and April was 0.3%. The result exceeded analysts’ forecasts.
Experts consulted by the Bloomberg agency predicted stable annual inflation compared to April. They had expected a 0.7% increase for the month.
Gasoline, in particular, rose 4.1% in May. Other sectors with price increases were housing, airline tickets and vehicles.
There were also increases in items such as medical care, furniture, entertainment and clothing.
Energy prices rose 34.6% in one year, reaching the highest level since September 2005.
Food prices rose 10.1% in 12 months, the most since March 1981.
Wall Street opened lower on Friday, reacting to inflation data. The Dow Jones lost 1.52% and the Nasdaq 1.64%.
– “First priority” – Core inflation was similar to April in a monthly comparison (0.6%), especially excluding the most volatile inflation and energy prices, which rose with the war in Ukraine.
Meanwhile, core inflation measured on an annual basis is slightly lower than last month’s 12-month rate of 6%.
President Joe Biden will speak on the subject at 1:45 PM (14:45 GMT) from the Port of Los Angeles, the arrival area for cargo ships from Asia.
Biden will once again invite the House of Representatives to vote next week on a bill passed by the Senate in March that aims to prevent ocean liners from inflating prices that affect the goods consumers buy.
The president described inflation as the “first priority” of domestic policy.
Next week, the Federal Reserve (Fed, US central bank) will meet on Tuesdays and Wednesdays to assess the level of interest rates, one of the tools to contain inflation.
The organization is trying to control consumer and business demand by making credit more expensive.
At its last meeting, the Fed raised benchmark interest rates by a quarter point and a half point, respectively, twice in a row, placing it at 0.75% and 1.00%.
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source: Noticias
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