The consumer price index rose 8.6% in May from a year ago, marking the fastest increase since December 1981. Energy prices, usually volatile, rose 3.9% from a month ago in May, bringing the annual increase to 34.6%. The inflationary pressure will not likely subside anytime soon amid the continued supply chain issues. However, the energy sector is said to have historically performed well in such an environment, beating inflation 71% of the time.
Oil prices rose this week as tight global supplies outweighed worries that demand would be pressured by increased COVID-19 cases in Beijing and potential interest rate hikes. Brent crude rose 26 cents to settle at $122.27 a barrel. U.S. West Texas Intermediate crude rose 26 cents to settle at $120.93 a barrel.
