Big jump in key US inflation gauge.
•A US inflation measure closely watched by the Federal Reserve posted its biggest year-on-year jump since the 1990s in April, rising more than expected and fueling concerns about price increases.

•The commerce department’s core personal consumption expenditure index, which strips out volatile food and energy costs, rose 3.1% last month compared with a year ago.
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•The surge represents a sharp increase compared with the 1.9% annual rise in March, and was higher than a consensus forecast estimating a 2.9% jump.
•The surge may raise fresh alarm about the US recovery overheating as the pandemic wanes.
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•One of the biggest factors driving year-on-year increase relates to so-called base effects – the comparison with 2020 readings that were exceedingly low during the first lockdowns.
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•The plans envisage the US debt ratio rising to 117% of output over the coming decade, with inflation as measured by the consumer price index remaining relatively tame, at just above 2%. US growth is expected to be 5.2% this year before slowing in subsequent year.
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