(NYTIMES) – The news on inflation has been bad for months, but it’s recently become worse. In June, the consumer price index in the United States rose at an annual rate of 9.1 per cent – the fastest pace since November 1981.

That horrendous news adds to the considerable pressure on the Federal Reserve to bring inflation under control. The Fed is trying – by raising short-term interest rates and selling the securities on its US$8.9 trillion (S$12.4 trillion) balance sheet.