Inflation surged 8.6% over the last year — fastest since 1981

Inflation accelerated across the U.S. in May, jumping to 8.6% — the steepest increase since 1981, according to new government data.

The jump in the Consumer Price Index, a broad basket of goods and services, was due mainly to price increases for fuel, food and housing, the Labor Department reported Friday. In April, the CPI rose at an 8.3% annual rate, defying hopes that inflation had peaked. Economists had forecast that the CPI rose 8.2% in May, according to FactSet.

Core inflation, which strips out food and energy prices, increased 6% over the last year. Although that was down from 6.2% in April, Michael Pearce of Capital Economics said the latest inflation data offer little sign that inflation is ebbing.

 

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