US Inflation Quickens to 40-Year High

June 11, 2022

By Karan Maur

US inflation hit a 40-year high in May, signaling that price pressures are becoming entrenched in the economy.

The aggressive series of interest-rate hikes is likely to push the Federal Reserve to extend its policy, adding to political problems for the White House and Democrats.

The Labor Department data showed that the consumer price index increased 8.6% from a year earlier in a broad-based advance on Friday.

The widely-followed inflation gauge rose by 1% from the month before, beating all estimates. The biggest contributors were shelter, food, and gas.

Prices for goods such as apparel continued to climb, contributing to the stronger-than-forecast core figures.

Airfares rose 12.6% in May, a slight moderation from the prior month but still up the most on an annual basis since 1980.

Prices for hotel stays were up 22.2% year-over-year