The May Consumer Price Index (CPI) data is here and it brings with it higher inflation than what experts were expecting.
Let’s go over the details of that May CPI data below!
- According to the report, inflation increased by 8.6% during May 2022 compared to the same time last year.
- That’s worse than the 8.3% increase in inflation that experts were predicting.
- For comparison, inflation in April was sitting at 8.3%.
- Shelter, gasoline, and food were the top contributing factors to inflation in May.
- This saw the price of shelter increase 0.6% from April.
- The price of gasoline saw the biggest jump with a 4.1% increase, compared to the previous month.
- Finally, the price of food increased by 1.2% since April.
- The massive increase in inflation in May represents the largest seen in the last 40 years.
- This is also affecting workers with the price of real wages decreasing by 0.6% from April.
- Extending that out over the last year shows the price of real wages has dropped 3%.
- This news if having a negative effect on the stock market today.
- That’s due to experts predicting more extreme efforts from the Federal Reserve to try and combat inflation.
- This means investors will likely see more increases in interest rates at the next Fed meeting.
There’s more stock market news that investors will want to read about below!
We’ve got all the hottest stock news traders need to catch up on for Friday! That includes what’s happening with Stitch Fix (NASDAQ:SFIX), Netflix (NASDAQ:NFLX), and Rise Education (NASDAQ:REDU) stock today. You can read up on these matters at the links below!
More Friday Stock Market News
- Stitch Fix (SFIX) Stock Plummets 15% After Announcing Layoffs
- NFLX Stock Slumps as Goldman Sachs Says Netflix Is a ‘Sell’
- Why Is Rise Education (REDU) Stock Up 400%?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.