Inflation in the US rose 5 percent over the past 12 months – inflation in the us rose 5 percent over the past 12 months
According to Labor Department data, the increase in consumer inflation in May indicates that the demand for various goods and services is increasing. People are shopping and traveling more in the rapidly opening up economy after the containment of the Kovid-19 pandemic.
On the one hand, while the demand of consumers is increasing, on the other hand there is a shortage of parts ranging from steel to chemicals. From manufactured products to services, the demand is increasing, which is driving up the prices.
According to the government report, core inflation rose by 0.7 per cent in May, compared to a rise of 3.8 per cent in the previous 12 months. Core inflation excludes high volatility energy and food items.
From grain seller General Mills to paint maker Sherwin-Williams, many companies are raising prices or planning to do so. The reason for this is the increase in the cost of raw materials and increase in their wages to attract the employees.
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