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Report: Core inflation rises at fastest rate since 1992

Shoppers hold bags as they walk in Herald Square in New York City on November 27, 2020. New data from the Bureau of Labor Statistics says the core inflation index for 12 months has increased at its fastest rate since 1992. File photo by John Angelillo/UPI
Shoppers hold bags as they walk in Herald Square in New York City on November 27, 2020. New data from the Bureau of Labor Statistics says the core inflation index for 12 months has increased at its fastest rate since 1992. File photo by John Angelillo/UPI | License Photo

June 10 (UPI) -- The core interest inflation rate over the past 12 months skyrocketed 3.8%, its largest increase over that period since June 1992, according to a new report from the Bureau of Labor Statistics Thursday.

The figure highlighted consumer pricing jumps across the board, with the consumer price index increasing 0.6% in May on top of the 0.8% it rose in April. Over the past 12 months, the all-items index has risen 5%, its fastest rate since 2008.

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The all-items index has been trending up consistently since January. The core inflation rate, which excludes volatile food and energy prices, increased 0.7% in May, slightly down from the 0.9% it increased in April.

"The strength in the top line indices was driven largely by categories that have been heavily disrupted by COVID and remain under pressure from supply chain disruptions," Eric Wingorad, senior economist at Alliance Bernstein, told CNBC. "The more persistent categories of inflation -- the ones that do a better job of capturing the sustainable trend -- are significantly more subdued."

The car and trucks index continued its rising trend, jumping 7.3% in May. The increase accounted for about one-third of the seasonally adjusted all-items index increase. The food index increased 0.4% last month, equaling its April increase.

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