Consumer goods prices soar as economy bounces back from pandemic

Inflation in May was up 5% from a year ago, the largest increase since the Great Recession. Prices in nearly every category, from food to clothing, have increased.
2:12 | 06/11/21

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Transcript for Consumer goods prices soar as economy bounces back from pandemic
Now to the economy, to your money tonight. The prices you're paying at the grocery store, for gas, for clothes, even for used cars and what this all signals now about the economy here in the U.S. Consumer prices up 5% last month from a year ago. That's the biggest jump since the recession in 2008. So, the obvious question, where is this headed? Here's ABC's chief economics correspondent Rebecca Jarvis now. Reporter: Tonight, from the grocery store to the gas station and the dealership, with the economy bouncing back from the pandemic, prices are soaring. Price of chicken's gone up like 40%. Reporter: Inflation up 5% in may from a year ago -- the largest increase since the great recession. This coming as weekly jobless claims fell to their lowest level since March 2020. Consumers are spendingmore rapidly than businesses can reopen or ramp up and hire up. As long as that's going on, that makes it hard for prices to abate. Reporter: Prices rising in nearly every category. In may, beef up 2.3%. Cereals and bakery goods up 0.5%. Clothing prices up 5.6%. Gasoline up 56% from a year ago. But one of the biggest increases of all and the key driver of the overall surge in inflation, the price of used cars, up almost 30%. With the supply of cars hit by decreased production during the pandemic and exacerbated by a global shortage of semiconductors, a key component in cars. As we get further away from the pandemic rebound, those factors should dissipate in their heat and we should see some cooling. Rebecca Jarvis with us tonight. And we just heard the economist say we could see some cooling, but give us a reality check here. What does that cooling look like, how soon? And is there any agreement on this? Reporter: Well, David, top economists are really divided on this question. Some including the fed chair believe this inflation is temporary, that prices should normalize by the end of this year, but others see the supply disruptions and the labor shortages caused by the pandemic and our response as having a more lasting impact on prices. David? We know you'll continue to watch this. Great to have you, Rebecca.

This transcript has been automatically generated and may not be 100% accurate.

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