US inflation continues to rise

On Friday, the monthly rise in the consumer price index, is significantly faster than the 0.3 per cent increase recorded in April and above economists' expectations for a 0.7 per cent uptick. This maintains pressure on the US central bank to hike interest again in an attempt to avoid a recession. At that pace, the year-over-year figure intensified to 8.6 per cent, the highest level since December 1981. Lael Brainard, the vice-chair, recently made clear that the Fed could continue the half-point pace through September and would only consider reverting to more typical quarter-point increments following a 'deceleration' in monthly inflation prints. According to the BLS, the 'broad-based' increase was driven primarily by a 3.9 per cent rise in energy prices and a 4.1 per cent gain in gasoline prices. The latter is up nearly 50 per cent compared with the same time last year.