BlockBeats News, June 10th, Economists expect that a key inflation gauge to be released on Wednesday will show that U.S. consumer prices rose at the fastest pace in over three years in May. Mark Zandi, Chief Economist at Moody's Analytics, said that unlike the inflation caused by supply disruptions during the COVID-19 crisis, this recent surge in prices is mainly attributed to government policies, including the Iran war. He said, "It has been almost five years since inflation last hit the Fed's target, and I think it has gradually eroded the collective psyche, which is one of the reasons people feel so bad about the economy."

According to a recent survey by CBS News, three-quarters of Americans say their income is not keeping up with inflation. Economists say that the May CPI data show that the rise in energy prices may be the primary driver of sustained inflation. Zandi noted that in addition to energy costs, economists on Wednesday will also focus on the costs of goods and services to assess how higher fuel prices are affecting the economy. He said, "It's not just gasoline prices going up; diesel prices are up too, which raises prices for everything transported by truck, from groceries to Amazon packages. Flying is also more expensive now because airlines have passed on the higher cost of jet fuel to passengers." (Xinhua)