After the announcement on Friday, The consumer price index released its result and rose 8.6% in May from a year ago. It is the highest increase since December 1981.
Core inflation, which excludes food and energy, increased by 6%. Both were far higher than predicted. Food, gas, and energy costs have all risen in recent months, with fuel oil up 106.7 percent in the last year. Workers lost additional ground in May as a result of rising inflation, with real earnings falling 0.6 percent from April and 3% over a year.
The US stock market has taken a significant hit. The Dow Jones Industrial Average fell roughly 2.7 % or about 880 points. The S& 500 fell 2.9 percent, while the Nasdaq Composite fell 3.5 percent, as technology stocks fell with banks and consumer stocks. Markets are back on the edge due to inflation.
Gold and the Dollar, are predicted to reach higher prices and gain their value due to inflation. It is because gold is a dollar-denominated commodity and its price rises in line with inflation. Inflation is defined as a rise in the price of goods and services due to an increase in the cost of commodities and products. Consumer products become more expensive as inflation rises.