The Consumer Price Index (CPI) went up by 8.6 percent in May, the highest year-over-year increase in four decades, the Bureau of Labor Statistics revealed on Friday.

The increase was higher than the 8.3 percent increase projected by economists. Core CPI, excluding volatile energy and food prices, increased by six percent year-over-year.

Price increases were recorded in “shelter, gasoline, and food,” the BLS said. Gas prices hit a new record on Friday with the national average reaching $4.986 per gallon, according to AAA.

The CPI previously hit a four-decade high of 8.5 percent year-over-year in March; prices increased by 1.2 percent in March 2022 alone.

The Congressional Budget Office projected in a report in late May that inflation will continue into 2023, but at a decreasing rate over the course of this year.

“In CBO’s projections, elevated inflation persists in 2022 because of the combination of strong demand and restrained supply in the markets for goods, services, and labor,” CBO director Phillip L. Swagel said in a statement. “In response, the Federal Reserve tightens monetary policy, and interest rates rise rapidly.”

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Inflation Rate Hits 8.6 Percent, Highest Level in Four Decades

The increase in the inflation rate exceeded lofty ... READ MORE


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