Heating up: US inflation comes in hot again in May

US CPI up by 3.8% year-on-year

Last week, the US Labor Department reported that its core consumer price index (CPI) for the month of May increased by a whopping 3.8% on a year-on-year basis.

This marks the second month in a row where US inflation has handily beaten expectations and the numbers are frankly quite big. The sequential inflation readings in both April and May were some of the strongest numbers we have seen since the early 1980s. So, is it time to start worrying about a major inflation breakout in the US? The likely answer is: probably not. All eyes on the Fed's next move as US inflation jumps to 5% in May Last month we noted that almost 80% of the inflation was driven by transitory items. Basically, the nation is experiencing large increases in used car pri...