Last week, the Consumer Price Index, jumped a sizzling 5% in May from a year earlier – to its highest level since 2008. Meanwhile, core CPI rose 3.8% year over year, which is its sharpest increase since 1992.

The inflation reading represented the biggest CPI gain since the 5.3% increase in August 2008, just before the global financial crisis sent the U.S. spiralling into the worst recession since the Great Depression – and Oil prices skyrocketing to $150 a barrel.

The hot reading now positions, the Federal Reserve’s June meeting is the big event for markets in the week ahead.

So far this year, the Fed has remained amendment that inflation will run hotter than its traditional 2% goal for a longer period than estimated as the global economy reopens, but should be transitory. Focus now shifted to the Fed’s June 15-16 meeting for further clarity on policymakers’ view on rising inflation and monetary policy going forward.

One of the key indicators of rising inflation – is higher oil prices. On Monday, Oil prices rallied to a 32-month high – putting them firmly on course for their biggest quarterly advance since 2010.

Elsewhere, many other commodities ranging from Copper, Palladium, Iron Ore to Lumber prices surged past all-time record highs in recent weeks – And this could just be the beginning!

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

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