The CPI (Consumer Price Index) a key metric used to measure inflation rocketed up on Tuesday to an astonishing 4.2 percent. Noticeably higher than 3.6 percent which had been predicted.
As CNBC reports:
Inflation in April accelerated at its fastest pace in more than 12 years as the U.S. economic recovery kicked into gear and energy prices jumped higher, the Labor Department reported Wednesday.
The Consumer Price Index, which measures a basket of goods as well as energy and housing costs, rose 4.2% from a year earlier. A Dow Jones survey had expected a 3.6% increase. The month-to-month gain was 0.8%, against the expected 0.2%.Excluding volatile food and energy prices, the core CPI increased 3% from the same period in 2020 and 0.9% on a monthly basis. The respective estimates were 2.3% and 0.3%.
The increase in the headline CPI rate was the fastest since September 2008.
The stunning rise spooked the markets with the Dow Jones taking a major dive after the inflation data was released.