Inflation stayed red-hot in May as CPI spiked 8.6% — highest since 1981

American consumers continue to be weighed down by soaring levels of inflation as the consumer price index remained at a sky-high clip of 8.6% — the highest since 1981 — thanks to skyrocketing oil prices as well as the rising cost of food, rent and health care.

The 8.6% year-over-year figure is higher than the 8.3% that was predicted by analysts — and exceeded the 8.3% posted in April, when it dipped from 8.5% in March.

On a month-over-month basis, the Consumer Price Index rose 1% in May — well above the predicted increase of 0.7% by Dow Jones experts and up from a 0.3% increase in April.

The so-called “core inflation” rate, referring to increases in the price of goods excluding volatile food and energy costs, was 6% on an annual basis, down slightly from the 6.2% rate recorded in April, but above economists’ 5.9% estimate. 

The stunning jump in inflation quickly roiled the stock market. The Dow plunged 400 points at the open and closed down 880 to cap another losing week.

Analysts had hoped the US had reached “peak inflation” and that the CPI would begin to show signs of cooling.