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US Inflation Quickens to 40-Year High, Pressuring Fed and Biden

  • Consumer price index rose 8.6% in May annually, 1% from April
  • Shelter, food and gas were biggest contributors to advance
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US Inflation Hits 40-Year High of 8.6%
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US inflation accelerated to a fresh 40-year high in May, a sign that price pressures are becoming entrenched in the economy. That will likely push the Federal Reserve to extend an aggressive series of interest-rate hikes and adds to political problems for the White House and Democrats.

The consumer price index increased 8.6% from a year earlier in a broad-based advance, Labor Department data showed Friday. The widely followed inflation gauge rose 1% from a month earlier, topping all estimates. Shelter, food and gas were the largest contributors.