'Price Surge After 28 Years'... US May Inflation Soars 5% (Update)

[Asia Economy New York=Correspondent Baek Jong-min] It has been revealed that inflation in the United States has accelerated. The Federal Reserve's (Fed) concerns over tapering asset purchases and raising interest rates have deepened.

[Image source=AP Yonhap News]

On the 10th (local time), the U.S. Department of Labor announced that the Consumer Price Index (CPI) for May rose 5.0% compared to a year ago. This exceeded the Dow Jones consensus forecast of 4.7%. The CPI increase rate in April was 4.2%.

The core Consumer Price Index, which excludes volatile items such as energy and food that the Federal Reserve (Fed) focuses on, also rose by 3.8%. This too significantly exceeded the market expectation of 3.4%. The increase rate in April was 3.0%.

U.S. media reported that the core CPI surged to the highest level in 28 years.

With the confirmed rise in CPI, concerns about inflation are expected to grow further. It is also expected to impact the Federal Open Market Committee (FOMC) meeting scheduled for June 15-16.

Fed Chair Jerome Powell and other Fed officials have emphasized that inflation is a temporary phenomenon.

The CPI also affected the market. The yield on the U.S. 10-year Treasury note, which had entered the 1.4% range a day earlier, rose to 1.518% after the CPI announcement. In the New York stock market, Dow Jones futures are gaining momentum, while Nasdaq futures are showing a downward trend.