US Inflation hits six-year high

Added On June 14, 2018

U.S. inflation in May accelerated to the fastest pace in more than six years, showing growing price pressures in the economy.

According to the Labor Department, the consumer price index in May rose 0.2 percent from the previous month, and 2.8 percent from a year earlier. The figures mark the strongest annual growth since February 2012.
Higher prices in May were partly caused by a 1.7 percent increase in the gasoline index. The increase also led to a 0.9-percent rise in the energy index.
Excluding food and energy, the so-called core consumer price index was up 0.2 percent from the previous month and 2.2 percent from a year ago.
The report comes just before a policy meeting between Federal Reserve officials.
Many economists and market participants expect the Fed will raise interest rates again on Wednesday. This is to keep the U.S. economy from overheating.
According to signals from the Fed, if the economic outlook is in line with its expectations, then it will raise interest rates "soon."