Inflation in the U.S. rose at a greater-than-expected pace of 9.1% in June, fueled by higher
prices for gasoline and food.
The consumer price index (CPI) in America rose 9.1% in June from a year earlier, the largest
annualized gain since December 1981, according to data from the U.S. Labor Department.
Inflation increased 1.3% in June from May of this year, the largest month-over-month rise since
2005, due largely to higher gasoline and food costs.
Economists had forecast a 1.1% monthly rise in CPI, and an 8.8% year-over-year increase.
June was the fourth consecutive month that inflation in the U.S. exceeded market expectations.
Core inflation, which removes volatile food and energy prices, rose 0.7% from May and 5.9%
from a year earlier, which were also higher than economists’ forecasts.
The latest inflation numbers increase the likelihood that the U.S. Federal Reserve will continue
to raise interest rates throughout the rest of this year to lower overheated consumer prices.
The U.S. central bank has already signaled a second 75 basis-point interest rate hike at its next
meeting later this month, and some economists are now forecasting that the Fed will follow the
Bank of Canada’s lead and lift interest rates by a full percentage point.
Gas prices in the U.S. rose 11.2% in June from May. Food costs increased 1% month-over-
month and were up 10.4% from a year ago. Costs for shelter in the U.S. gained 0.6% in June
from May.