U.S. inflation soars to 8.6% a year-on-year basis in May, a 40-year high

Inflation in the United States surprised to the upside in May, after the consumer price index soared 8.6% from 2021, the largest increase since December 1981.The US CPI grew 1% compared to April, after the modest increase of 0.3% the previous month, according to the Department of Labor, well above what analysts predicted, who expected inflationary pressures to ease slightly. In this framework, the data showed that gasoline soared by 4.1% in the month, with large increases in housing, airfares and used and new vehicles.
U.S. inflation is putting severe pressure on families, forcing them to pay much more for food, gasoline and rent, and reducing their ability to afford discretionary items, from haircuts to electronics. In this regard, economists expect inflation to decline this year, though not by much. Some analysts forecast that the inflation gauge the government released on Friday — the consumer price index — could fall below 7 percent by the end of the year. In March, the year-on-year CPI reached 8.5%, the highest rate since 1982.Polls show that Americans consider high inflation to be the country’s main problem, and most disapprove of President Joe Biden’s handling of the economy. Congressional Republicans are pressuring Democrats on this issue ahead of this fall’s midterm elections.
Inflation has remained high even as the sources of price rises have changed. At first, strong demand for goods from Americans who were stuck at home for months after COVID led to shortages and supply chain bottlenecks and pushed up prices for cars, furniture and appliances.
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Original source in Spanish