US inflation surges to 41-yr high of 8.6%; stocks fall sharply, crude dives

The faster-than-expected increase in inflation last month reported by the Labor Department on Friday also reflected a surge in rents, which increased by the most since 1990

US consumer prices accelerated in May as gasoline prices hit a record high and the cost of food soared, leading to the largest annual increase in nearly 40-1/2 years, suggesting that the Federal Reserve could continue with its 50 basis points interest rate hikes through September to combat inflation.

Oil prices sank along with Wall Street stocks after news about extremely high US consumer prices inflation. At 9.35 pm IST, Brent Crude was trading at $121.03 a barrel, down 1.66 per cent; WTI was at $119.66 a barrel, down 1.52 per cent. 

The S&P 500 was 2.7 per cent lower in morning