U.S. inflation accelerated to a fresh 40-year high in May, a sign that price pressures are becoming entrenched in the economy. That will likely push the Federal Reserve to extend an aggressive series of interest-rate hikes and add to political problems for the White House and Democrats.
The consumer price index (CPI) increased 8.6 percent from a year earlier in a broad-based advance, Labor Department data showed Friday. The widely followed inflation gauge rose 1 percent from a month earlier, topping all forecasts. Shelter, food, and gas were the largest contributors.
The so-called core CPI, which strips out the more volatile food and energy components, rose 0.6 percent from the prior month and 6 percent from a year ago, also above forecasts.
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