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US consumer prices surge to new 40-year high of 9.1 percent

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Heather Scott, Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="Spices are weighed for a customer at a stand at Grand Central Market in Los Angeles, California, USA, June 16, 2022. On June 15, the Federal Reserve raised interest rates by three-quarters of a percentage point, its largest interest rate hike since 1994, in an effort to slow inflation. Caroline Brehman, EPA-EFE " src="https://sa.kapamilya.com/absnews/abscbnnews/media/2022/overseas/07/13/20220713-spices.jpg"/><figcaption>Spices are weighed for a customer at a stand at Grand Central Market in Los Angeles, California, USA, June 16, 2022. On June 15, the Federal Reserve raised interest rates by three-quarters of a percentage point, its largest interest rate hike since 1994, in an effort to slow inflation. <em>Caroline Brehman, EPA-EFE </em></figcaption></figure></div><p>WASHINGTON — US inflation surged to a fresh peak of 9.1 percent in June, further squeezing American families and heaping pressure on President Joe Biden, whose ratings have taken a battering from the relentless rise in prices. </p><p>Government data released Wednesday showed a sharp, faster-than-expected increase in the consumer price index from the previous month driven by significant increases in gasoline prices.</p><p>The 9.1 percent CPI spike over the past 12 months to June was the fastest increase since November 1981, the Labor Department reported.</p><p>Energy contributed half of the monthly increase, as gasoline jumped 11.2 percent in June and a staggering 59.9 percent over the past year. Overall energy prices posted their biggest annual increase since April 1980.</p><p>The war in Ukraine has pushed global energy and food prices higher, and US gas prices at the pump last month hit a record of more than $5 a gallon. </p><p>However, energy prices have eased in recent weeks, which could start to relieve some of the pressure on consumers.</p><p>But the Federal Reserve is likely to continue its aggressive interest rate increases as it tries to tamp down the price surge by cooling demand before inflation becomes entrenched.</p><p>The US central bank last month implemented the biggest rate hike in nearly 30 years, and economists say another three-quarter-point increase is likely later this month.</p><p>Ian Shepherdson of Pantheon Macroeconomics summed up the data in one word: &quot;Ouch.&quot; </p><p>&quot;This report will make for very uncomfortable reading at the Fed,&quot; he said. &quot;It rules out the chance of the Fed hiking by only 50bp this month.&quot;</p><div><strong>SIGNS OF COOLING? </strong></div><p>Driven by record-high gasoline prices, the consumer price index jumped 1.3 percent in June.</p><p>But Shepherdson noted some signs of cooling prices in the data and predicted &quot;this will be the last big increase.&quot;</p><p>When volatile food and energy prices are stripped out of the calculation, &quot;core&quot; CPI increased 5.9 percent over the past year -- still a rapid pace but slowing from the pace in May, according to the data. </p><p>Food and housing prices also rose in June, as did car prices, though the rate has stabilized or slowed from the past month, the report said.</p><p>The White House came out ahead of the report to predict it would show &quot;highly elevated&quot; inflation. </p><p>But press secretary Karine Jean-Pierre noted that the &quot;backwards looking inflation data&quot; does not take into account recent declines in gasoline prices.</p><p>According to AAA, the national average price at the pump was down to $4.63 a gallon, from $5.01 a month ago. </p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/06/23/22/us-fed-chair-admits-recession-a-possibility-after-rate-hikes">US Fed chair admits recession a &#x27;possibility&#x27; after rate hikes</a></li>	<li><a href="https://news.abs-cbn.com/business/05/05/22/us-fed-makes-biggest-rate-increase-since-2000-to-fight-inflation">US Fed makes biggest rate increase since 2000 to fight inflation</a></li></ul><p>© Agence France-Presse</p><div><strong>RELATED VIDEO: </strong></div><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/tHsnHNqWDBw?enablejsapi=1" width="560"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div><div> </div>

US consumer price inflation surged 9.1 percent over the past 12 months to June, the fastest increase since November 1981, according to gov't data.

US consumer prices surge to new 40-year high of 9.1 percent

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US consumer prices surge to new 40-year high of 9.1 percent

Heather Scott,

Agence France-Presse

Published Jul 13, 2022 09:37 PM PHT

|

Updated Jul 13, 2022 09:55 PM PHT

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US inflation

US consumer prices

United States

American economy

CPI

oil prices

gas prices

food prices

Ukraine

Russia

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