According to a press release from the US Department of Labor, consumer prices in the country resumed their rapid growth in May, accelerating by 1% during the month. In annual terms, inflation was 8.6% after an increase of 8.3% a month earlier. The annual figure has become a record since December 1981. Analysts expected that annual inflation would remain at the level of April, and monthly inflation would accelerate to 0.7% (from April 0.3%). The core consumer price index (excluding volatile food and energy prices) rose by 0.6% in May, maintaining the same dynamics as in the previous month. The annual rate decreased slightly – to 6% compared to 6.2% in April. Inflation in the service sector (excluding energy-related expenses) increased by 0.6% over the month and by 5.2% compared to the same period last year. The administration of American President Joe Biden tried to blame the high inflation on Russian President Vladimir Putin, linking the rise in commodity prices with the military operation. Supply chain disruptions caused by the new quarantine due to Covid-19 in China also put additional upward pressure on inflation in May.
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