U.S. CPI Rose More Than Expected in May, Hitting New 40-Year High -Breaking
Investing.com – The U.S. inflation increased more than was expected in May. It is a sign that Americans are losing hope about a slowing rise in living expenses.
Inflation rose 1.0% in April, bringing it to an all-time high of 8.6%. Analysts expected that the headline rate would remain at 8.3% with only 0.7% monthly growth.
Inflation rate (which excludes volatile food and energy prices) also increased more than anticipated. Core inflation increased by 0.6% over April.
Stocks and bonds in the United States were immediately sold as soon as the news broke. They fear that the Federal Reserve would have to continue prioritizing inflation even though the economy is slowing down.
They were trading at 1.0% after being down 44 point by 12:38 GMT (1238 GMT) While the 1.2% drop was 0.9%, 200 points were lost.
In the meantime, the yield of the benchmark Treasury note rose 9 basis points, to 2.90%.