Inflation rose to a new four-decade high of 8.6% in May, with energy prices up 3.9% from a month ago, bringing the annual increase to 34.6%. The inflation is showing no signs of slowing down amid the continued supply chain issues. However, the energy sector is known to have historically performed well in such an environment, beating inflation 71% of the time.
Oil prices rose yesterday, with Brent crude up 26 cents, settling at $122.27 a barrel, while the U.S. West Texas Intermediate crude rose 26 cents to settle at $120.93 a barrel, as tight supplies outweighed worries that demand would be pressured by the rise in COVID-19 cases in Beijing and more interest rate hikes.
