The consumer price index rose 4.2% in April from a year earlier, the fastest pace since September 2008, and 0.8% in April from a month earlier, the biggest increase since June 2009.
In this regard, Goldman Sachs, a well-known investment bank, has analyzed that a major culprit of the jump in U.S. CPI in April is the high price of used cars, which is not sustainable and mainly depends on the data of U.S. Producer Price Index (PPI).
It would take a bigger than expected jump in PPI to stoke further fears of inflation and an early Fed rate hike.
But the producer price index surged 6.2 per cent in April from a year earlier, the biggest increase since tracking began in 2010.
So, from the main data point of view, inflation in the United States has reached a very alarming level.
This is often the case when the US economy has gone from recovery to overheating.
On the price front, chicken, gas, homes, lumber and used cars are all rising at record prices, according to CNN.
At the same time, the median sale price of an existing home in the United States rose 16 percent from the first quarter of 2020 to $319,200, the highest since the NAR began tracking city data in 1989.
The price of lumber skyrocketed as housing prices rose.