U.S. economic resumption drives inflation, labor market up
Consumer prices in the United States reached historic highs in May, pointing to the sharpest level of jump recorded in almost 13 years. The resumption of the country’s economy fueled an expansion in travel-related services, while constraints in global semiconductor supplies sent prices of used motor vehicles up.
The consumer price index rallied 0.6% higher in May, sustaining April’s upbeat record. Food prices also gained 0.4%, but crude prices plunged deeper for two consecutive months. On an annual basis, the CPI hiked 0.5% to secure its strongest year-on-year jump since August 2008.
Easing layoffs seen in the labor market might support inflation, with employers implementing wage increase in a bid to resolve the country’s scarce workforce. But this would take longer as generous unemployment claims and coronavirus-driven fears prompted millions of Americans to stay at home.