US Inflation Hits Highest In 13 Years in May
U.S. consumer prices rose 5% year-on-year in May, according to data released by the labor department.
The latest figure is the highest annual inflation rate since August 2008, the Wall Street Journal reports.
Consumer demand bolstered as businesses reopened after a robust COVID-19 vaccination drive helped boost economic activities.
The food index increased 0.4 percent in May, while the used cars and trucks index rose sharply to 7.3%.
The consumer price index has been on the rise since January 2021, indicating a speedy economic recovery after the COVID-19 pandemic forced people to stay indoors and restricted everyday life.
If the trend continues, the central bank would be forced to tighten the monetary policy earlier than expected.
The Ten-year U.S. Treasury yield is down 2.2 basis points at 1.467%, to hit a one-month low. It had hit the 1.75% mark in March.
As a result, many companies, including Procter & Gamble Co (NYSE: PG), Kimberly Clark Corp (NYSE: KMB), General Mills Inc (NYSE: GIS), Campbell Soup Company (NYSE: CPB), Chipotle Mexican Grill Inc (NYSE: CMG) and UNILEVER N.V. (NYSE: UL) have proposed price rises across their product range.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
