Topline

Consumer prices rose 8.6% in the 12 months ending in May, unexpectedly returning to record levels—and climbing at the quickest pace in four decades—amid an unprecedented surge in gas prices.

Key Facts

Overall prices rose 1% from April—surpassing the 0.7% economists were expecting and much higher than the previous month’s increase of 0.3%, according to data released by the Labor Department on Friday.

The unexpected jump marks the largest 12-month increase since the period ending December 1981, according to the release, and comes after prices in April fell on a monthly basis for the first time since August.

The overall increase was the result of broad upticks across shelter, food and gas prices, which jumped 4% after falling 6.1% in April, the government said.

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Stock futures immediately fell after the worse-than-expected report, with the S&P 500 reversing early gains and falling 1.6% below Thursday’s closing level in pre-market trading.

This is a developing story. Please check back for updates.

Further Reading

$5 Milestone: Gas Prices Hit An All-Time National High (Forbes)

Inflation Spiked Worse-Than-Expected 8.3% In April (Forbes)

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