Inflation Surges Five Percent, Largest Spike Since 2008
Tennessee | June 11, 2021
The Consumer Price Index has increased 5% over the last 12 months, the fastest pace of inflation since August 2008, according to a Department of Labor report.
The Consumer Price Index (CPI), a common tool used to measure inflation, increased 0.6% between April and May, according to the Labor Department report released Thursday morning. Economists projected that the CPI increased by 0.5% and 4.7% over the 12-month period ending in May, according to The Wall Street Journal.
The prices of several commodities have already risen rapidly. Lumber, gasoline, steel, copper, computer chips, homes and home appliances have all increased in price.
Deutsche Bank Chief Economist David Folkerts-Landau, meanwhile, warned this week that inflation was a “time bomb,” CNBC reported. He said it could trigger a “significant recession and set off a chain of financial distress around the world.”
“The effects could be devastating, particularly for the most vulnerable in society,” Folkerts-Landau said, according to CNBC….
(Excerpts from the Tennessee Star)