Unforeseen Increase in Wages Creates Anxiety of a Likely Prolonged Inflation in the U.S.

Money markets in the U.S. are anxious that high inflation may not go away anytime soon,  after an unforeseen 0.5%  rise in wages in May.

Source: St. Louis Fed 

SPY  is up 0.09% EURUSD is up 0.02%  

Reopening of the economy after the pandemic has come with increasing consumer prices.

In May, inflation is expected to rise by a further 0.4%, taking annual inflation above the 4.2% recorded in April.

Policy makers and economists believe the rise in prices is temporary, but the rise in hourly wages raises new controversy over how long the inflation may last.