Inflation Hits 5% — There’s More to Come

Interesting how the Federal Reserve acted surprised when the official U.S. inflation hit 5%. Our readers were not shocked by this announcement. Any of our articles on inflation have predicted that inflation is inevitable.

Not only have we seen 5% rise in costs in May, we see more inflation coming our way.

* Rising oil prices are showing up at the gasoline pumps already.

* Chi­na’s pro­ducer-price in­dex jumped 9.0% from a year ago in May, ac­cel­er­at­ing from April’s 6.8% in­crease.

* The median sales price for a home in the U.S. increased by 20% from $310,000 in April 2020 to $372,000 in April 2021.

* The S&P GSCI XX:SPGSCI, a commodity index composed of 24 exchange-traded futures contracts, trades more than 28% higher this year, on track for the biggest first-half gain since 2009.

In­dus­trial in­fla­tion pres­sure will likely re­main and pose ad­di­tional risks to eco­nomic growth,” Cit­i­group econ­o­mists said in a note, adding that there is no quick fix to this round of com­mod­ity-led in­fla­tion.