US inflation sees highest levels since 2008

US consumer prices rose 4.2% in April compared to 12 months ago, which is a significant increase from the 2.6% observed in the month prior. The report from the US Labor Department arrives amid a backdrop of growing concerns in investors on how inflation will impact their investments. Inflation is comfortably breaching the Federal Reserve's target of 2% which does little to allay fears it might need to raise interest rates. Off the back of the report, US stocks sold off. The Dow saw a 1.25% drop in midday trading whilst the tech-focused Nasdaq index shed 1.89% on the news following on from yesterday’s sell-off. Central Banks continue to play down the data as a temporary bounce upon economies reopening.