This is a notable increase from the 0.3% rise recorded in April.
The highest inflation in four decades that currently affects the country did not give respite in May, the month in which the prices of gasoline, food and other basic products increased.
Experts estimate that these increases are largely due to the rise in gasoline prices, which had fallen in April but increased again in May.
The impact of inflation
Inflation in the United States is putting severe financial pressure on families, forcing them to pay more for items such as food, gas and rent.
Low-income black and Hispanic Americans, in particular, are seeing a greater proportion of their income being spent on necessities and services.
This is a difficult balancing act for the Fed, in a context of high inflation worldwide.
According to polls, Americans see high inflation as the number one problem, with a majority disapproving of President Biden’s handling of the economy. Republicans in Congress are seizing on the issue to criticize Democrats ahead of midterm elections in the fall.
The effects of the pandemic and the war in Ukraine
Inflation has remained high despite the fact that the ‘origin’ of the rise in prices has changed, at least in part.
Initially, demand for goods from Americans confined for months by the coronavirus pandemic led to shortages and supply chain disruptions, driving up prices for cars, furniture and appliances.
Now, as people have returned to spending on services, travel, entertainment and dining, the costs of airline tickets, hotel rooms and restaurant meals have soared on increased demand.
On the other hand, the Russian invasion of Ukraine has further accelerated oil and natural gas prices, since Russia is a major global ‘player’ in the energy market.