• Why It Matters: High inflation means your money buys you less. "Friday’s numbers dented hopes that inflation may have peaked and adds to fears that the U.S. economy is nearing a recession."
• The data released Friday shows "broad-based" inflation — rising costs in almost every category, not only month-to-month also but year-over-year. The leaders in rising costs? "Shelter, gasoline, and food ..."
• Some believe we may continue to see inflation climb. To counter inflation, the U.S. Central Bank (aka the Federal Reserve) will raise interest rates, making it more expensive to borrow; this is a way of attempting to cool demand, which *hopefully* may lead to a drop in inflation.
• BTW: The inflation data released Friday was compounded by a separate report that showed wages fell — another sign of a struggling labor market/economy, and why workers can't keep up with rising prices.

Inflation rose 8.6% in May, highest since 1981