Inflation in the US, as measured by the Consumer Price Index (CPI), jumped to 5% on a yearly basis in May from 4.2% in April, the data published by the US Bureau of Labor Statistics revealed on Thursday. This reading came in higher than the market expectation of 4.7%. On a monthly basis, the CPI edged lower to 0.6% from 0.8% but beat analysts’ estimate of 0.4%.
Further details of the publication revealed that the Core CPI, which excludes volatile food and energy prices, climbed to 3.8% annually from 3% in April.
With the initial market reaction, the US Dollar Index edged higher and was last seen gaining 0.13% on the day at 90.25.
