The prices of gas, food and most other goods and services jumped in May, raising inflation to a new four-decade high and giving American households no respite from rising costs. Consumer prices surged 8.6% last month from 12 months earlier, faster than April’s year-over-year increase of 8.3%. Retired Ripon College economist Paul Schoofs admits he is surprised. Schoofs the biggest reason was the price of gasoline. The new inflation figure, the biggest yearly increase since December 1981, will heighten pressure on the Federal Reserve to continue raising interest rates aggressively. On a month-to-month basis, prices jumped 1% from April to May, fueled by prices for food, energy, rent, airline tickets and and new and used cars.
