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This hefty increase in consumer prices is far more than what the analysts had predicted. In fact, it is 0.7 percent more than the prediction.
In May 2008, the headline inflation was up 0.6 percent compared to the previous month while the core inflation rate increased by 0.2 percent.
If we take a 12-month basis for the inflation rate, the rate in June 2008 was 5.0 percent and it is the highest annual inflation rate since May 1991. When compared to the core consumer price index of June 2007, the core consumer price index in June 2008 was 2.4 percent higher.
The United States is concerned about rising inflation coupled by sluggish growth which is fanned by the financial and housing crises that the nation has been witnessing for the last one year. In fact, rising oil and food prices has made the situation in the US quite grim, according to current Federal Reserve Chairman Ben Bernanke.
In the recent months, the Federal Reserve has slashed its key interest rate to 2.0 percent and it will be hard pressed to loosen the monetary policy because of increasing inflation and weakening economic growth.
This said, the current national rate of inflation still stands at 5.0 percent and is expected to increase in the coming months.
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Mexico, which has been touted as an upcoming economy, is suddenly feeling the pinch of inflation. The inflation rate in Mexico in June 2008 jumped to its fastest in the last three years on account of higher oil and food prices. This has put tremendous pressure on the Mexican central bank to increase the borrowing costs even though there seems to be a slowdown in the economy. 
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