[ad_1]
The Bureau of Labor Statistics reported Thursday that inflation rose 5% in the 12 months ending in May. That was a faster pace than economists had expected and the biggest jump since August 2008.
Excluding food and energy costs, which tend to be more volatile, inflation was 3.8% over the 12-month period. It was the largest increase in so-called core inflation since June 1992.
In May alone, prices rose 0.6% on a seasonally adjusted basis, slightly lower than in April. Core inflation, excluding food and energy prices, was 0.7%, down from 0.9% in April.
Once again, prices for used cars and trucks have risen sharply, increasing by 7.3% in May and accounting for a third of the total increase in May. Over the past 12 months, price tags are up 29.7% without seasonal adjustments. Prices for new cars also rose in May, up 1.6%.
Energy prices – which contributed much to previous months’ increases – were flat in May as gasoline prices fell and other energy components rose.
Elsewhere, home furnishings, airline tickets, and clothing costs have skyrocketed. Furnishings recorded their largest monthly increase since January 1976.
Americans also continue to return to restaurants as the economy reopens. Prices in the “food away from home” category rose 0.6%, the fastest pace since September.
This is an evolving story that will be updated.
.
[ad_2]
Picture Credit!