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Inflation worries continue to grip the markets today, after US consumer prices jumped much more sharply than expected in April amid supply shortages and rising demand as lockdowns ease.
The news that the Consumer Price Index has climbed 4.2% during the month from a year earlier – the fastest since 2008 – fueled fears that the US economy could be running too hot.
It triggered Wall Street losses last night, and in Asia-Pacific bourses where shares fell for the third day running.
With government support packages driving consumer spending, and stretched supply chains creating a scramble for raw materials, investors are concerned that the jump in inflation may not be temporary as the Federal Reserve believes.
The Dow fell 681 points, or 1.99%, to notch its single-worst session since January – a…