Prices in the US soared again last month, with inflation at a 40-year high
US prices rose faster than economists expected in June—but more recent data shows that there’s hope for inflation easing in the third quarter.
The latest release of consumer price index data, published on Wednesday (July 13), showed that prices had spiked by 9.1% year-on-year, the largest such increase since 1981. The surge was 0.3 percentage points higher than expectations. From May to June, prices went up by 1.3%. The increase was led by gas and food prices, rising 11.2% and 1% respectively on a monthly basis. Core inflation—which excludes volatile categories like food and energy—rose by 0.7%.
These numbers will keep the US Federal Reserve on its path of aggressive rate hikes. In its June meeting, the Fed raised rates by a dramatic 75 basis points, and indicated in its meeting minutes that it would be open to a similar hike in September.
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