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May Witnessed Unprecedented Surge in Consumer Price Inflation

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May Witnessed Unprecedented Surge in Consumer Price Inflation

The most recent data from the US Bureau of Labor Statistics reveals that the national Consumer Price Index, a broad gauge used to assess inflation levels of consumer goods, skyrocketed to all-time highs during May. More precisely, the CPI surged by 8.6%, marking a peak not experienced since December 1981.

The publication, though disheartening, did not catch many by surprise. The escalating prices in the United States have been a known fact, stemming from a blend of persistent supply chain disruptions, oil complications triggered by the Russian intervention in Ukraine, and stagnant wages prevalent across the entire job landscape.

“Reviewing the inflation figures for May, disappointment is inevitable,” emphasized John Leer, the chief economist at Morning Consult, in a released statement. “We have yet to observe any signs indicating a favorable turn of events.”

The Federal Reserve is presently engaged in a campaign to rein in soaring prices by hiking interest rates. Following the publication of this report, these rate increases are now a more tangible possibility, not to mention a potentially weightier one.

“It’s evident that this report doesn’t offer any silver linings,” remarked Julian Brigden, the president of MI2 Partners. “There’s little to lift the spirits of the Fed. … It’s challenging to envision the Fed stepping back now.”

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