Stocks plunge as inflation soars at fastest pace in 4 decades
CBSN
Stocks dived on Friday after new government data showed that inflation in May jumped 8.6% from a year ago, the steepest increase in consumer prices since 1981.
The S&P 500 fell 92 points, or 2.3%, to 3,926 as of 10:53 a.m. Eastern time. The Dow Jones industrial Average dropped 2%, and the tech-heavy Nasdaq sank 3%. In absence of a major upswing on Friday, major U.S. benchmarks are headed for their eighth week of losses in the past nine weeks.
The jump in the Consumer Price Index, a broad basket of goods and services, was due mainly to price increases for fuel, food and housing, the Labor Department reported Friday. The record increase dashed investor hopes of cooling inflation, replacing them with concerns of stagflation as central banks continue to raise interest rates in an effort to rein in inflation.
