European markets decline as inflation rises in The US

European shares fell sharply Thursday, May 12th, as global markets digested the latest inflation reading from the United States, and this reading raised fears that there is a tendency for prices to rise significantly in the future.

The pan-European Stoxx 600 Index is down 2.2% in early trading, with all major sectors and exchanges slipping into the red.

Investors are trying to digest the April inflation reading from the US, which showed the CPI rose 8.3% in April compared to last year.

Inflation was higher than expected and still near a 40-year high of 8.5%.