“The inflation caused consumer confidence to hit an all-time low on Friday,” according to a University of Michigan survey.
In fact, the increase in fuel explains much of the latest CPI data in USA. Inflation in May recorded 8.6% in 12 months, a maximum since December 1981according to Labor Department data released Friday.
In the month-to-month comparison with April, the increase in prices was 1.0%, while between March and April the increase was 0.3%. The figure is higher than expected by analysts. The experts questioned by the Bloomberg agency anticipated a stable annualized inflation in relation to the April record. In the month they expected an increase of 0.7%.
Fuel had an increase of 4.1% in May, while housing, plane tickets and vehicles also rose in price. Items such as medical care, furniture, leisure and clothing also had increases. Energy prices increased 34.6% in one year, their biggest increase since September 2005.
Food prices had their biggest increase since March 1981, with an upward variation of 10.1% in 12 months.
“These data indicate that inflation will not give way quickly”said Gregory Daco, chief economist at EY-Parthenon, adding: “CPI inflation (ndlr: based on consumer prices) will probably be above 6% in December.”
For its part, Wall Street felt the blow. Their indexes plummeted and they had their worst week since January. The Dow Jones industrial index left 2.73%, the technological Nasdaq, plummeted 3.52% and the S&P 500, considered the most representative of the market, lost 2.91%
Source: Ambito
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