Consumer prices increased at their fastest pace in more than a decade last month, the Labor Department said Tuesday. It is the third month in a row that costs have ballooned.
Inflation increased 5.4% in June – with vehicle sales and rentals accounting for nearly one-third of the swell – marking the most significant monthly jump since August 2008. Gas prices, which have almost doubled in the last year, are significantly impacting the rate.
Listen to your favorite News/Talk station now on Audacy.
Supply chain slow-ups and increased travel demand – plane tickets, hotel stays, and restaurant dining – also contributed to the surge.
“What this really shows is inflation pressures remain more acute than appreciated and are going to be with us for a longer period,” Wells Fargo economist Sarah House told CNBC. “We are seeing areas where there’s going to be ongoing inflation pressure even after we get past some of those acute price hikes in a handful of sectors.”
The White House had hoped the rise in inflation would be short-lived.
“The underlying price index outside the pandemic-affected areas is quite tame,” a White House economic advisor said to CNBC.
Economists expect inflation to calm the second half of the year.
Excluding food and energy costs, inflation jumped 4.5%, the most considerable increase since September 1991.
Related
Related
