Inflation surges 9.1% in June as US consumer prices rushed at the quickest annual pace since November 1981.
The CPI (Consumer Price Index) showed a year-over-year increase of 9.1% last month, even higher than the prior 40-year high of 8.6% in May. This was unexpected because economists were waiting for June’s reading to show only an 8.8% increase.
Speaking on a monthly view, inflation measure grew at a 1.3% inching up from 1% that was on May and growing faster than 1.1% that was expected by the economists. Since 2005, this was the largest monthly increase.
Early Wednesday, the U.S. stocks were crashed more than it was predicted. The S&P 500 shed 1.3% at the open, while the Dow dropped by 1.1% and Nasdaq fell 1.7%.
By the ongoing surge in inflation over the United States, economy was raised by broad-based increases,
The continued surge in inflation across the U.S. economy was elevated by broad-based increases, along with high food prices and very expensive gasoline prices, with top of 5 USD per gallon last month.
The core CPI, which keeps out the volatile food and the energy components, was increased by 5.9% in June, while experts were waiting for an increase of 5.7% only.
The energy index report in June rose by 7.5% and 41.6% over last year, highlighting the largest year increase since the ending April 1980. On the other hand, the report of food prices was raised by 1% over the month and 10.4% annually, the top increase since ending February 1981.
Even tho crude oil fell more than 8% this Tueday, Commodity prices are under pressure this week.
On Tuesday, White House on Washington, alerted in a call with reporters that inflation numbers will probably be “highly elevated” but pointed that gas prices have retreated from their highs.
The Administration tried to get out in front of the bad economic news, and tell us the inflation report was going to be ugly this month, but it was even worse than markets imagined in their wildest dreams – said Christopher Rupkey.