US consumer prices (CPI) lifted an above-consensus 0.6% in May to be up 5% — the most since August 2008 — on the same time last year.

Why is this important?

It adds fodder to the debate over whether current price spikes could morph into long-term inflation, despite the Fed’s assurances to the contrary.

Long term inflation could see the Fed taper monetary stimulus, which would be generally bad for stocks.

But a closer look showed that much of the price surge came from items such as commodities and airfares, and is therefore likely to be temporary, Morningstar says.

“Once people looked under the surface, the majority of the higher inflation is due to the reopening, and stocks had a relief rally,” Ryan Detrick, senior market strategist at LPL Financial said.

“The market is taking it in stride as it realises the whole economy isn’t overheating.”

Commodity prices remain on the boil, with global oil prices rising to their highest level in over 2 years on Thursday.

OPEC said that oil consumption will jump by about 5 million barrels a day in the second half of 2021, boosting sentiment.

The gold futures price nudged higher to $US1,896.40 an ounce, while iron ore rose 1.6% to $US217 a tonne on China’s elevated steel output.

The ASX 200 index is up 0.17 to 7,315.2 by lunch eastern time.

WINNERS

Here are the best performing ASX small cap stocks at 12pm Friday, June 11:

Swipe or scroll to reveal the full table. Click headings to sort.

Tech venture firm Fatfish Group (ASX:FFG) has acquired ‘BNPL Next’ — a holding company “that aims to provide various corporate and consumer financial services” — in an all-shares deal for $4.14m.

AssetOwl (ASX:AO1)  signed another real estate agency on as a client to trial its ‘inspector360’ platform.

Health stock Avita Medical (ASX:AVH)  announced FDA approval for the use of its burns treatment to patients under 18.

Resources micro-cap Victory Mines (ASX:VIC) kicked off a new drilling program at its Coogee project in WA.

And biotech Argenica Therapeutics (ASX:AGN) is having a strong first day on the ASX, up 43% on debut.

LOSERS

Here are the worst performing ASX small cap stocks at 12pm Friday, June 11:

Swipe or scroll to reveal the full table. Click headings to sort.