Prices will soar as temperatures heat up with the Biden administration warning that the worst of inflation is still to come. A U.S. government official yesterday (Thursday) admitted that the peak hasn’t yet hit, despite the consumer price index packing in another 0.6% increase in May. In the last 12 months, a 5% price increase has been recorded – the largest jump recorded in 2008.
The official said, “It’s most likely that it’s going to peak in the next few months. We’ll probably see the worst of it this summer.” The official also suggested that the rate of inflation may fall towards the end of the year, though some cite increased government spending on infrastructure projects and education will make that decline unlikely.
The official acknowledgement that inflation rates will continue on an upward trajectory for a number of months is a huge boost for gold, which has used recent spikes and inflation fears as fuel for substantial price gains. This will only continue as the consumer price index continues to soar.