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Consumer prices in the US have been rising sharply since 2008

U.S. consumer prices rose sharply for nearly 13 years in May compared to the previous year, as rising electricity prices grow in the world’s largest economy.

The rise of the Bureau of Labor Statistics’ index of price index (CPI) exceeded the actions of economists, which led to a major crisis over the US economy being at risk of global warming due to a lack of supply and demand for growth.

The CPI rose 5% last month compared to May 2020 – a speed compared to 4.2% year-on-year in April, as well as its 5.4% gain in August 2008.

Core CPI – the first phase of inflation that eliminates volatility such as food and energy – rose 3.8% in May each year, particularly since 1992, up 3% in April.

The data was released as the Federal Reserve plans to launch a competition to reduce the purchase of goods set up to support the economic recovery, despite the ruling by central bank officials and that inflation is not only temporary.

Officials in Biden, who are trying to force Congress to pay more than $ 4tn over the next ten years, believe high inflation is expected next year when the economy recovers, but will never rule again.

The increase in prices is due to the increase in numbers compared to this year’s increase and the drop in prices in the early coronavirus epidemic. Furthermore, a report on Thursday showed high prices – due to rising airlines, household appliances and operations, new cars, rental cars and clothing.

The number of used motor vehicles rose 7.3 percent in May, accounting for about one-third of the CPI increase. Prices for used cars jumped amid a semiconductor deficit that affects automotive production.

“We hope this will be an annual interest rate when the financial crisis ends in the coming months,” said Kathy Bostjancic, US chief financial officer at Oxford Economics.

However, he cautioned that inflation is linked to recovery and inflationary barriers to inflation could cause inflation to “rise and fall because tensions / shortcomings are gradually resolved”.

Monthly, consumer prices rose by 0.6%, following a 0.8% increase in April. Core CPI increased by 0.7% per month.

Lawmakers in the Federal Reserve have been pushing for higher prices because commodity prices have been slashed for some time despite widespread economic instability.

Minutes A meeting of the central bank in April indicated that officials were pursuing a cheaper approach, but were ready to discuss initial measures to reduce the amount of financial resources triggered by the epidemic. In particular, it is expected to address the potential for a minimum of $ 120bn in monthly debt that began last year.

“We think the policy makers will see the start of negotiations soon but as a precautionary measure to anticipate a sudden turn of events in the coming months,” Krishna Guha and Peter Williams of Evercore ISI wrote on Thursday.

Some Republican economists and lawmakers say the Fed has underestimated the risk.

“The fear of rising prices is a bit like the pain in the legs because it solves the problem but it still hurts, and it hurts because the fear is remembered even after the segment is gone,” said James Sweeney, chief financial officer at Credit Suisse.

Larry Summers, a former U.S. Treasurer and Secretary of State who strongly criticized US currency and finance, raised alarms after the plan was released Thursday.

“If global warming occurs in the US and ultimately there is a high interest rate driven by the Fed or markets, there will be significant risks to the economy which has already begun to deteriorate,” Summers said.

Market trends in these elections were defeated. Yields on the U.S. 10-year Treasury initially rose after data but during the day it had dropped by 0.018 percent to 1.470%. U.S. stocks were positive, while the S&P 500 and Nasdaq were up 0.5 and 0.67% respectively.

The 10-year yield is back in the areas seen earlier in March, “showing that the retail market is in line with the Fed’s view that inflation is short-lived and should not be re-introduced soon,” said Anu Gaggar, Chief Secretary of Global Investment at Commonwealth Financial Network.

Additional reports by Naomi Rovnick and Joe Rennison in London

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