US inflation rises in May highest rate in the last 40 years, 8.6% is a new rise in consumer prices, primarily driven by the sharp rise in energy prices.
monthly increase 1 percent of consumer prices between March and April.
Data released this Friday, Bureau of Labor Statistics The US percentage is higher than analysts expected and ends with the ceasefire in April, when the rate recorded its first drop in seven months.
This new ascent makes the already predictable new. half point increase Announcement of interest rates by the Federal Reserve (Fed), which will meet next week.
historic rise The increase in consumer prices is primarily due to the increase in energy prices and, to a lesser extent, the increase in housing and food prices.
energy prices (gasoline, crude oil, electricity and gasDriven by the 106.7% increase in crude oil prices, it has risen 34.6% in the last twelve months, the largest annual increase since 1935 when this statistic began to be compiled.
Compared to April, energy prices increased by 3.9%. 2.7% drop then recorded by March.
Meanwhile, food prices increased by 10.1% In one year, there was an 11.9% increase especially in supermarket shopping and 7.4% increase in food shopping in restaurants.
Both figures are slightly higher increase compared to last monthIn May, it contributed to the increase in inflation at the fastest rate recorded in the country in the last 40 years.
Excluding the most volatile food and fuel prices, Core inflation was 6% per year.
Housing prices, which have the greatest weight in the calculation of the underlying inflation, increased. 5.5% in a year, monthly increase was 0.6%.
The rise in prices has become fashionable the main headache for US president Joe Biden, who has reiterated since last month that controlling the rise in prices is his “highest economic priority”.
The President echoed this idea in a speech in the port this Friday. angelsAlthough before the war the index was already on an upward trajectory, he once again blamed Russian President Vladimir Putin and his decision to invade Ukraine for high inflation in the US.
“I understand how Americans feel worried. I myself grew up in a home with rising gas prices, and that’s what we talked about at the table. This has made a difference in rising food prices,” he said. Scranton (Pennsylvania).
The price increase is partially labor market soundness The American increases the purchasing power of consumers as companies have to raise wages to attract workers, which in turn allows prices for goods to rise. foods, Energy and hireamong others.
rate unemployment It was 3.6% in May, practically full employment levels.
Still, there are signs that labor market The US economy is moderating as May and April data report less pronounced growth than in previous months.
All this amid fears that the US economy will run into recession With increases in interest rates that the Fed has approved to try to curb inflation.
The Federal Reserve is expected to continue raising interest rates, which are currently at a level. Between 0.75% and 1%, at least as long as job creation remains strong.
The Fed plans to approve two half-point hikes in interest rates, according to the minutes of the last meeting. the next two meetings.