Consumer prices in the U.S. rose sharply in May

4 days ago
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Inflation was 5 percent year-over-year, a record high in 13 years

U.S. consumer prices rose 5 percent in May from a year earlier, according to the Labor Department.

This is the highest annual rate of inflation in nearly 13 years.

The increase is largely due to the country’s recovery from the coronavirus pandemic: prices are rising as consumers, many of whom received generous government payments, began going to restaurants, going on vacations and buying expensive items again.

On a monthly basis, prices are up 0.6 percent from April, with used car and truck prices showing the biggest increases.

Furniture and clothing prices, as well as airfares, also contributed to the increase in the overall consumer price index.

Treasury Secretary Janet Yellen said last weekend that inflation could reach 3 percent for 2021, which is high for the U.S.

It is still unclear how much inflation would have to rise for the Federal Reserve to begin winding down its stimulus measures.