Soaring US inflation leads to interest rate fears - Capital Economics

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Soaring US inflation leads to interest rate fears

28 May, 2021The Times

The sharp increase in the latest core PCE index, released by the US Commerce Department, “largely reflects reopening inflation, with the prices of components like hotel rooms, air fares and used motor vehicles all soaring”, Paul Ashworth at Capital Economics said. “The combination of falling real consumption and soaring prices last month gives off a faint whiff of stagflation.”

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