Consumer Price Index up 9.1% in June
According to the Bureau of Labor Statistics, inflation hit another high in June, rising 9.1% year-over-year, which was higher than expected. Most economists were anticipating 8.8%, and it marks another month of the fastest inflation growth since 1981.
Even when excluding volatile food and energy prices, the Consumer Price Index increased 5.9% compared to last year, which was higher than the 5.7% estimate. For the month, CPI rose 1.3%.
Energy prices increased 7.5% compared to the same period last year, marking a massive 41.6% increase on a 12-month basis. Food increased 1%, shelter, 0.6%, and medical commodities were up 0.4%.
Gasoline prices are up almost 60% for the 12-month period, and vehicle costs continue to rise, with new vehicles up 0.7% and used vehicles up 1.6%.
The good news is that commodity prices have been falling recently, with crude oil down more than 8% in recent trading.
However, it is still expected that the Federal Reserve will increase interest rates another 0.75% in late July.