Fed In a Tight Spot After CPI Numbers Show Inflationary Pressure Is Still Broad-based

The May consumer price index report came in hotter than feared, with prices rising 8.6% year over year, the highest level since 1981. The increase marks a re-acceleration of inflation that makes it more difficult for consumers to afford everyday purchases at the grocery store and gas pump. It also poses a challenge for the Federal Reserve as it tries to secure a strong economy. CPI was 6% when excluding food and surging energy prices. Economists were looking for 8.3% for the main index and 5.9%...

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