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US Inflation Data: At 9.1%, US inflation hits 40-year high in June | International Business News
WASHINGTON: Rising gas, food and rent prices US Inflation to a new four-decade high in June, putting more pressure on households and likely sealing the record for another big rate hike due to Federal Reservewith higher borrowing costs to track.
Consumer prices rose 9.1% from a year earlier, the government said on Wednesday, the biggest increase in 12 months since 1981 and up from an 8.6% increase in May. On a monthly basis, prices rose 1.3% from May to June, another significant increase, after prices rose 1% from April to May.
The continued rise in prices shows the brutal impact that inflation has had on many families, especially as the cost of basic needs rises much faster than average incomes. Lower-income Black and Hispanic Americans have been hit particularly hard, as their disproportionate share of income goes to essentials like housing, transportation and food. .
Some economists had hoped that inflation could reach or near its peak in the short term. For example, gas prices fell from $5 a gallon in mid-June to an average of $4.66 nationally on Tuesday – still much higher than a year ago but the drop could help slow inflation in July and possibly August.
In addition, transportation costs and commodity prices have begun to decrease. Wage growth has slowed. And surveys show that Americans’ expectations for long-term inflation have softened – a trend that often points to more moderate price increases over time.
For now, however, soaring inflation has caused consumer confidence in the economy to plummet, sending President Joe Biden’s approval rating down and posing a major political threat to the US economy. Democrats in the November congressional elections 40% of adults said in a June AP-NORC poll that they think tackling inflation should be the government’s top priority in the coming months. this year, up from just 14% said in December.
Consumer prices rose 9.1% from a year earlier, the government said on Wednesday, the biggest increase in 12 months since 1981 and up from an 8.6% increase in May. On a monthly basis, prices rose 1.3% from May to June, another significant increase, after prices rose 1% from April to May.
The continued rise in prices shows the brutal impact that inflation has had on many families, especially as the cost of basic needs rises much faster than average incomes. Lower-income Black and Hispanic Americans have been hit particularly hard, as their disproportionate share of income goes to essentials like housing, transportation and food. .
Some economists had hoped that inflation could reach or near its peak in the short term. For example, gas prices fell from $5 a gallon in mid-June to an average of $4.66 nationally on Tuesday – still much higher than a year ago but the drop could help slow inflation in July and possibly August.
In addition, transportation costs and commodity prices have begun to decrease. Wage growth has slowed. And surveys show that Americans’ expectations for long-term inflation have softened – a trend that often points to more moderate price increases over time.
For now, however, soaring inflation has caused consumer confidence in the economy to plummet, sending President Joe Biden’s approval rating down and posing a major political threat to the US economy. Democrats in the November congressional elections 40% of adults said in a June AP-NORC poll that they think tackling inflation should be the government’s top priority in the coming months. this year, up from just 14% said in December.
