According to a report from the department of labor, Consumer Price Index has increased 5% over the last 12 months.
This is the faster pace of inflation since the crisis of 2008.
The Consumer Price Index (CPI), a common tool used to measure inflation, increased 0.6% between April and May, according to the Labor Department report released Thursday morning. Economists projected that the CPI increased by 0.5% and 4.7% over the 12-month period ending in May, according to The Wall Street Journal.
The prices of several commodities have already risen rapidly. Lumber, gasoline, steel, copper, computer chips, homes, and home appliances have all increased in price.
“The effects could be devastating, particularly for the most vulnerable in society,” Deutsche Bank Chief Economist David Folkerts-Landau said, according to CNBC.
But Federal Reserve and Treasury Department officials have remained steadfast, arguing that while prices may increase in the short term, they would eventually return to normal levels. Treasury Secretary Janet Yellen even admitted on Sunday that President Joe Biden’s policies may trigger inflation, but that it wouldn’t overheat the economy.