Inflation rises at fastest pace in 40 years, new Consumer Price Index data shows

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Posted at 8:46 AM, Jun 10, 2022
and last updated 2022-06-10 22:00:54-04

Record gas prices are to blame for the highest inflation levels the U.S. has seen in 40 years.

Consumer prices surged 8.6% last month from a year earlier, faster than April's year-over-year increase of 8.3%, the Labor Department said Friday.

The new inflation figure, the highest since 1981, will heighten pressure on the Federal Reserve to continue raising interest rates aggressively.

Other goods that have gone up in price include food, rent and used cars.

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When not accounting for volatile food and energy prices, the CPI recorded a 6% increase for the period ending in May.

On Friday, benchmark U.S. crude oil gained 82 cents to $122.33 per barrel and the AAA auto club reported the national average for a gallon of regular gas in the United States hit $4.99.

Meanwhile, President Joe Biden is expected to speak on inflation on Friday afternoon.

He will be at the Port of Los Angeles, the country's busiest port, to discuss efforts to tackle inflation.