US inflation hits new 40-year high in May

Consumer prices in the United States accelerated in May, with gasoline prices reaching new highs and the cost of food skyrocketing

Consumer prices in the United States accelerated in May, with gasoline prices reaching new highs and the cost of food skyrocketing

Resulting in the largest annual increase in nearly four and a half years

Implying that the Federal Reserve could keep raising interest rates by 50 basis points through September to combat inflation.

The Labor Department's faster-than-expected increase in inflation this month also reflected a surge in rents

 Which increased by the most since 1990.

Continuous price pressures in the United States are causing consumers to adjust their purchasing habits

Raising fears of a full-fledged recession or a period of extremely slow development.

After gaining 0.3 percent in April, the consumer price index jumped by 1.0 percent last month.

The inflation report was released before of the Fed's expected second 50-basis-point rate hike on Wednesday.

The Federal Reserve of the United States is projected to boost its policy interest rate by half a percentage point in July.

The US dollar surged versus a basket of currencies, but US markets opened down.