Consumer prices rose last month by 5% compared to May of 2020, marking the biggest year-over-gain since August 2008, according to Consumer Price Index data released this morning. Prices were .06% higher in May than they were in April.
Why it matters: April’s CPI reading intensified concerns that inflation is heating up and will be hard to contain. Today’s data could stoke those fears further and contribute to a self-fulfilling cycle of rising prices.
- The White House on Wednesday got out in front of the expected jump in prices, asserting that the current uptick will be a short-term phenomenon, Axios' Hans Nichols reports
- May's reading was slightly higher than economists' consensus estimates for a 0.4% month-over-month increase and a 4.7% jump from a year ago.
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