Posted on 06/13/22
| News Source: WMAR2NEWS
Investors are bracing themselves for the fallout from Friday's latest Consumer Price Index. The report shows inflation rose 8.6% in May.
It's the largest 12-month increase since December 1981.
Many financial analysts warn inflation is about to get worse before it gets better. Meanwhile, the Federal Reserve is taking painful steps to try and stop the U.S. economy from heading into a recession.
Allianz chief economic adviser Mohamed El-Erian said “I think you've got to be very modest about what we know about this inflation process. And I fear that it's still going to get worse. We may well get to 9% at this rate."
Out of control gas prices are driving the high rate of inflation not seen since Ronald Reagan's first year in the Oval Office.
The latest consumer price index shows inflation continues to climb. It now stands at 8.6%.
America's 40-year-high rate of inflation has been blamed on everything from a tight labor market to Covid and from Russia's war in Ukraine to government spending.
Grocery prices are up nearly 12% from a year ago. The largest spikes are for the costs of eggs, meat, and bread. It’s the highest increase on these basic food staples since 1979.