Government reports another jump in prices

The Labor Department reported that consumer prices surged again in May, rising 0.6 percent over the previous month. That brings overall inflation during the past year to 5 percent, the biggest spike since 2008.

What’s behind the price increases? Rising prices are partly due to demand. More people are shopping, traveling, and eating out as pandemic restrictions end. But a shortage of supplies—of everything from lumber and steel to chemicals and semiconductors—is also driving up prices. Airline fares and hotel prices also jumped ahead of the summer travel season, and prices for cars and trucks were up. Some analysts say loose policy from the Federal Reserve is the underlying reason for the price hikes.

Dig deeper: Read my report in the Sift about price increases in April.