May inflation in the US rose to 8.6 percent annually, exceeding expectations.
Inflation numbers for May in the USA were announced. Annual inflation rose to 8.6 percent from 8.3 percent in April. The median estimate of economists was for inflation to be 8.3 percent. The most significant increase was in food, fuel, and housing costs.
CPI also exceeded the forecasts of 0.7 percent with 1 percent monthly. Core inflation was 0.6 percent monthly, exceeding the expectations of 0.5 percent, while the annual increase fell to 6 percent from 6.2 percent. The expectation was 5.9 percent.
Energy prices increased by 3.9 percent monthly, and the annual increase reached 34.6 percent.
Core inflation data, which was announced above the expectations, also strengthened the expectation that the Fed will be more aggressive in interest rate hikes.
