Inflation grew at the fastest rate in more than a decade last month, but CNBC’s Jim Cramer called it the worst kept secret on Wall Street and said the stock market took it in stride.
The consumer price index, which measures the cost of a basket of goods like food and energy, increased 5% year-over-year in May, according to the Labor Department. While high, that was just a bit above the 4.7% gain expected by a Dow Jones survey.
“When everyone expects an outrageous government statistic, then it isn’t actually outrageous when you get it,” he said on “Mad Money.” “So when the Labor Department reported a red-hot inflation number this morning … the market took it in stride.”
Inflation came in at the hottest rate since August 2008, yet the S&P 500 rose 0.5% to a record close of 4,239.18.