US inflation accelerates as petrol and food prices climb

High inflation also poses a political risk for President Joe Biden and his Democratic Party heading into the mid-term elections in November.

US consumer prices accelerated in May as forecourt petrol prices hit a record high and the cost of food soared, leading to the largest annual increase in over 40 years, raising expectations for more US rate hikes through September to combat inflation.

The relentless price pressures are forcing Americans to change their spending habits and will certainly heighten fears of either an outright recession or a period of very slow growth.