The US Bureau of Labor Statistics reported that inflation surged to 8.6% in May, the fastest rate since 1981.
Defying expectations, headline inflation jumped to 8.6% annually and became a headache for the monetary authorities. The May CPI has been the strongest one since the early 1980s.
Consumer prices in the US climbed by 1% in May from a month ago in seasonally adjusted terms following a 0.3% rise in April. The real estate sector, transport services, and food prices took the brunt of soaring inflation. Besides, energy prices zoomed up by 34.6%, the highest annual growth since 2005.
Joe Biden’s administration shifts the blame for runaway inflation onto the dodgy policy of Russia’s President Vladimir Putin. The US authorities claim that rampant inflation was entailed by the Russia – Ukraine conflict. In turn, the Russian leader insists that raging inflation was unleashed by the reckless actions of the White House.
The global economic crisis escalated amid the simmering Russia – Ukraine tensions. In this context, economies around the world have to survive appalling inflation. Consumer prices have leapt to the peaks last seen in the early 1980s. The UK CPI topped 9% in May on the annual basis, the highest rate in the last 40 years. Soaring consumer inflation has also been recorded in Germany. The largest European economy reported its annual CPI at 7.9% in May. Turkey’s economy has been the worst stricken by inflated consumer prices. Amid the slump in the Turkish lira, the annual inflation rate accelerated to 73.5%, the record high in the last 24 years.
