Q- This month, the U.S. inflation rate reached a 40 year high of 7.5%. High inflation is a major threat for bond investors, because over time it erodes the real-world return of the regular interest payments. Historically, it is also a concern for stock investors because it has prompted the Federal Reserve to increase rates which can put downward pressure on stock prices.

Which of the following is currently helping drive up inflation in the U.S.?

A) Rising rents for apartments

B) Commodity prices including oil, cotton, and natural gas

C) Used car prices

D) Supply chain disruptions and bottlenecks

E) All answers are correct