Consumer prices for May accelerated at their fastest pace in nearly 13 years as inflation pressures continued to build in the U.S. economy.

The Consumer Price Index, which represents a basket including food, energy, groceries, housing costs and sales across a spectrum of goods surged a sizzling 5% in May from a year earlier – the highest since 2008. Meanwhile, core CPI rose 3.8% year over year, the sharpest increase since 1992.

The 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 readings put next week's Federal Reserve meeting in focus. So far this year, the Fed has continued to state that inflation will run hotter than its traditional 2% goal for a longer period than estimated as the global economy reopens, but should prove temporary. However traders are unconvinced and fear the rapid spike in inflation could become uncontrollable and present a major threat to the U.S. economy since the 1980s.

If you’re wondering just how high Silver prices could get – you only have to take a look at what is happening across the entire commodities complex.

This week Oil prices soared to their highest since October 2018 with WTI hitting $70 a barrel, while Brent topped $72 a barrel. Elsewhere, many other commodities ranging from Copper, Palladium, Iron Ore to Lumber prices surged past all-time record highs in recent weeks.

With that in mind, its only matter of time before Silver prices eventually catches up with the rest of the commodities complex.

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

Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.

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