US inflation rate climbs at fastest pace since 2008
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The increase was driven by a rise in the costs of used cars and trucks. (Photo by Justin Sullivan/Getty Images)
US inflation has soared to the fastest annual rate since the financial crisis, fuelling concerns of early policy tightening by the Fed.
The Labor Department said its consumer price index (CPI) rose 0.6 per cent last month after surging 0.8 per cent in April.
In the 12 months to May, CPI accelerated five per cent, its biggest annual increase since 2008.
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Investors shrug off rise
The inflation jump surpassed economists’ forecast of a 0.4 per cent rise, but investors were unfazed as Wall Street’s main indexes opened higher.