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U.S. inflation measure rose in May by highest yearly clip in 3 decades

U.S. inflation measure rose in May by highest yearly clip in 3 decades
The New York Stock Exchange is seen Monday on Wall Street in New York City.  Photo by John Angelillo/UPI | License Photo

June 25 (UPI) -- A key data point used to measure inflation in the United States was up 3.4% in May over the previous 12 months, the Commerce Department said Friday -- the highest annual rise in three decades.

The core personal consumption expenditures price index, which examines changes in the cost of goods and services climbed at its highest rate since 1992. For the month, it was up 0.5%.

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"The estimate for May personal income and outlays reflected the continued economic recovery, reopening of establishments and continued government response related to the COVID-19 pandemic," the department said in a statement.

"The decrease in personal income for May reflected declines in pandemic-related assistance programs."

The May increase was 0.2% lower than it was in April. The year-to-year index had slowly been increasing this year, from 1.4% in January and February, to 1.9% in March and 3.1% in April.

Friday's report said personal income decreased 2% and disposal income 2.3%. Personal expenditures rose by less than 0.1%.

Supply chain disruptions and a shortage of computer chips have created a bottleneck for some industries, like automobiles, and a rapid rise in lumber cost has driven up real estate costs.

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