U.S. Inflation Rising at Fastest Rate in Six Years

The U.S. inflation rate is rising at its fastest pace in the past six years, according to Bloomberg News. The consumer price index, the standard metric for measuring inflation, “rose 0.2 percent from the previous month and 2.8 percent from a year earlier,” Bloomberg reports, making the annual gain the largest since February of 2012. The rapidly rising inflation rate will likely reduce the effects of recent wage increases, which Bloomberg already described as “relatively tepid.” This news does, however, support the Federal Reserve’s outlook for interest rates. The data, according to Kevin Cummins, an economist at NatWest Markets cited by Bloomberg, “provide further evidence that inflation is moving towards the Fed’s objective.”