Wednesday, June 15, 2011

US inflation highest since 2008

Inflation in the US rose to a two-and-a-half year high, as economists warned against "tremendous complacency" over the country's climbing prices.

Official data showed prices rose 3.6pc in the year to May, the biggest leap seen since October 2008, as an easing in fuel prices last month was offset by rising food bills.

Economists were more concerned that the "core" measure of inflation, stripping out the volatile elements of energy and food, jumped 0.3pc on the previous month.

This was the biggest monthly gain in five years when comparing the unrounded data, according to Capital Economics.

The steady rise seen in core prices in recent months suggests the US could be in for a nasty surprise after two decades of growth without an inflation problem, said economists at Legal & General Investment Management (LGIM), the insurance giant's fund division.
Read the rest here.

See here for the true inflation figures.

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