Shoppers paid sharply higher prices for a variety of goods in June as inflation kept its hold on a slowing U.S. economy, the Bureau of Labor Statistics reported Wednesday.
Inflation rose
The consumer price index, a broad measure of everyday goods and services related to the cost of living, soared 9.1% from a year ago, above the 8.8% Dow Jones estimate.
Inflation rose
That marked the fastest pace for inflation going back to November 1981. Excluding volatile food and energy prices, so-called core CPI increased 5.9%, compared with the 5.7% estimate.
Inflation rose
Core inflation peaked at 6.5% in March and has been nudging down since. On a monthly basis, headline CPI rose 1.3% and core CPI was up 0.7%, compared to respective estimates of 1.1% and 0.5%
Inflation rose
Taken together, the numbers seemed to counter the narrative that inflation may be peaking, as the gains were based across a variety of categories.
Inflation rose
“CPI delivered another shock, and as painful as June’s higher number is, equally as bad is the broadening sources of inflation,” said Robert Frick, corporate economist at Navy Federal Credit Union.
Inflation rose
“Though CPI’s spike is led by energy and food prices, which are largely global problems, prices continue to mount for domestic goods and services, from shelter to autos to apparel.”
Inflation rose
The inflation reading could push the Federal Reserve into an even more aggressive position. Traders upped their bets on the pace of interest rate increases ahead.