Inflation rose 9.1% in June, even more than expected, as price pressures intensify

The Bureau of Labor Statistics reported Wednesday that inflation kept its hold on the slowing U.S. economy in June.

The consumer price index, a broad measure of everyday goods and services, rose 9.1% from a year ago. Inflation went back to December 1981 at the fastest rate.

Excluding volatile food and energy prices, the core consumer price index increased 5.9%.

On a monthly basis, the headline inflation rate was up 1.3% and the core inflation rate was up 0.7%.

The numbers seemed to counter the idea that inflation may be peaking, as the gains were based on a variety of categories.

On a yearly basis, energy prices were up 41.6%. The food index increased 1% while shelter costs rose 0.6% for the month and were up 5.6% for the year. Food at home has risen at least 1% for the last six months.

According to the BLS, rental costs increased by 0.8% in June.

The data caused stock market futures to plunge.

The price of gasoline increased by 11.2% on the month and was just shy of 60% over the course of the year. Electricity costs went up. Prices for new and used vehicles both increased.

The largest monthly change ever recorded for medical care costs was caused by a 1.9% increase in dental services.

Airline fares fell in June but are still up 34.1% from a year ago. The meat, poultry, fish and eggs category is up 11.7% over the past year.

Consumers have been suffering through soaring prices for everything from airline tickets to used cars.

Policymakers have not been able to come up with an answer to a situation that is caused by a number of factors, including outsized demand for goods over services, and trillions of dollars in Covid spending that has made consumers flush with cash.

The benchmark short-term borrowing costs have gone up by 1.5 percentage points as a result of the Federal Reserve's interest rate increases. Inflation is expected to come closer to the central bank's target rate.

The increase in prices was blamed by the White House on the Russian invasion of Ukraine. President Biden wants gas station owners to lower their prices.

The administration and leading Democrats blame greedy corporations for raising prices because of the Pandemic. Since the second quarter of 2021, corporate profits have increased just 1.3%.

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