By Peter Schiff, SchiffGoldInflation’s embers flared again in May, dashing hopes that last year’s price scare was fading. The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.5 percent for the month, lifting the headline rate to 4.2 percent year-over-year and marking a second straight acceleration. Energy was the chief culprit, and the renewed heat pushed safe-haven demand for precious metals higher, with spot gold briefly touching $4,177 per ounce on Wednesday.Energy prices leapt 3.9 percent in May and now sit 23.5 percent above year-earlier levels. Gasoline alone surged 7.0 percent for the month and a staggering 40.5 percent over 12 months. According to the Bureau of Labor Statistics, energy costs accounted for more than 60 percent of May’s overall CPI increase. Wage earners felt the bite even more acutely; the CPI-W, the measure that determines annual Social Security cost-of-living adjustments, climbed 4.4 percent from a year ago.Even the Chained CPI, designed to capture substitution toward cheaper goods, jumped 0.6 percent in May and 4.0 percent on the year. This is hardly evidence that consumers can easily dodge higher prices.Core inflation, which excludes the volatile food and energy categories, looked calmer at first glance, rising 0.2 percent in May and 2.9 percent year-over-year. Yet the details tell a stickier story. Shelter costs, the biggest component in the index, advanced 0.3 percent for the month and remain 3.4 percent higher than last spring despite a softening rental market. Food prices inched up 0.2 percent, leaving supermarkets 3.1 percent more expensive than a year earlier, while airline fares soared 2.7 percent in May and an eye-watering 26.7 percent over 12 months. Even modest upticks such as used-vehicle prices (up 0.1 percent on the month) suggest broad-based pressure rather than an isolated energy spike.With real yields sinking back into negative territory, investors appear unwilling to wait for policymakers to...(READ THIS FULL ARTICLE FREE HERE). Contributor posts published on Zero Hedge do not necessarily represent the views and opinions of Zero Hedge, and are not selected, edited or screened by Zero Hedge editors.Loading...