401kRollover Blog

The Department of Labor has reported that the rate of inflation within the U.S. rose by 0.4% in May; this was, in most part, pushed upwards by the steep increase in the price of gas. Gas rose by 10.4% – the largest increase since June of 2009. According to the Consumer Price Index Summary, the core rate of inflation, which does not include food and energy prices, rose by 0.1%. For the second month in a row, food prices remained the same; however, that may well go up during the next few months after some parts of the U.S. encountered an egg shortage.

During the past year, the overall rate of inflation has not increased, whilst the core rate has risen 1.7% – both of these rates have been experiencing modest pressures over the time period. A hike in inflation will not be welcomed by the typical U.S. saver, whose returns have already suffered from low interest rates. If you are concerned about the fragile state of the U.S. economy and how rising inflation will affect it, please Like & Share this post.