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Major inflation measures have risen sharply since 1992.

Considering the cost of food and energy, which tends to be more volatile. Inflation was 3.8% during those 12 months, the highest increase known as core inflation since June 1992.

in May alone Price increased by 0.6% after season adjustment. slightly less than in April Core inflation (excluding food and energy prices) was 0.7%, down from 0.9% in April.

Although May’s price rose faster than economists had expected. But it should come as no surprise to Cailin Birch, a global economist at The Economist Intelligence Unit.

“The Consumer Price Index hit its lowest point during the coronavirus crisis in the same month last year. This, combined with recent price growth has been strong in some areas. This means that year-over-year inflation numbers are inevitably large. she said in an emailed comment.

She expects inflation to return to a range of 2% to 3% in the second half of the year.

But supply chain problems and rising demand continue to drive prices higher. For example, prices for used cars and trucks rose sharply again, rising 7.3% in May and accounting for a third of the total. Overall May jump in the past 12 months The price tag is up 29.7% without seasonal adjustments.

The used car market is on fire as the perfect storm of low interest rates. Car rental is limited. Global chip shortage and people returning to work who did not want to use public transport due to the pandemic. New car prices also rose in May, up 1.6 percent.

Although the May price index increase was driven by only a few categories. But inflationary pressures are evident throughout the report.

For example, household appliances airline fare and the cost of clothing increased rapidly. The furnishings recorded the largest monthly increase since January 1976.

Americans continue to return to restaurants as the economy reopens. Prices in the “food out” category rose 0.6%, the fastest since September. Restaurant prices have risen as companies pay their workers more to incentivize them to return to work. Although millions of people remain unemployed as a result of the pandemic, businesses are reporting challenges in recruiting qualified employees. Companies have announced minimum wage increases to attract workers.

Andrew Hunter, senior US economist at Capital Economics, said: “The severe labor shortage (And resulting in higher wage pressures) the leisure and hospitality sectors are experiencing now.”

Ultimately, rising production costs affect consumers. Campbell Soup (CPB) It announced Wednesday that prices have risen due to higher costs in the supply chain.

Energy prices, which contributed to the sharp increase in the previous month, were flat in May, with lower oil prices and other energy items rising.

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