Benzinga | Jun 10, 2021 02:02PM EDT

US Inflation Hits Highest In 13 Years in May

* U.S. consumer prices rose 5% year-on-year in May, according to data released by the labor department.

* The latest figure is the highest annual inflation rate since August 2008, the Wall Street Journal reports.

* Consumer demand bolstered as businesses reopened after a robust COVID-19 vaccination drive helped boost economic activities.

* The food index increased 0.4 percent in May, while the used cars and trucks index rose sharply to 7.3%.

* The consumer price index has been on the rise since January 2021, indicating a speedy economic recovery after the COVID-19 pandemic forced people to stay indoors and restricted everyday life.

* If the trend continues, the central bank would be forced to tighten the monetary policy earlier than expected.

* The Ten-year U.S. Treasury yield is down 2.2 basis points at 1.467%, to hit a one-month low. It had hit the 1.75% mark in March.

* As a result, many companies, including Procter & Gamble Co (NYSE:PG), Kimberly Clark Corp (NYSE:KMB), General Mills Inc (NYSE:GIS), Campbell Soup Company (NYSE:CPB), Chipotle Mexican Grill Inc (NYSE:CMG) and UNILEVER N.V. (NYSE:UL) have proposed price rises across their product range.