Inflation in the US will reach its highest level in 40 years

Inflation in the United States surged faster than predicted last month, driven by rising energy and food expenses, reaching its highest level since 1981: BBC

After dropping in April, annual inflation climbed to 8.6% in May, according to the Labor Department. Households are under pressure from the rising cost of living, putting pressure on politicians to tackle the problem. The US Federal Reserve has been raising interest rates since March. Analysts hope the measures will help cool economic activity and ease price pressures. But the conflict between Russia and Ukraine, which has pushed up prices for oil and commodities such as wheat by disrupting exports from both countries, has made the problem difficult to resolve. 

Nutrition prices increased by more than 10% last month compared to May 2021, while energy prices increased by more than 34%. However, rises continued to spread through the economy, driving up the prices of everything from plane tickets and clothing to medical services, according to a report released on Friday. "There are so many ideas that inflation has reached its apex." "Consumer prices have beaten expectations — and not in a good way," said Greg McBride, chief financial analyst at Bankrate.com. "With an 8.6 percent annualized increase, the fastest in more than 40 years."