US consumer prices at 40-year high
Investors next week will be watching data on US inflation, due out on Thursday. photo: reuters
US inflation surged to a fresh peak of 9.1% in June, further squeezing American families and heaping pressure on President Joe Biden, whose approval ratings have taken a battering from the relentless rise in prices.
Government data released on Wednesday showed a sharp, faster-than-expected increase in the consumer price index, compared to May, driven by significant increases in gasoline prices.
The 9.1% CPI spike over the past 12 months to June was the fastest increase since November 1981, the Labour Department reported.
Energy contributed half of the monthly increase, as gasoline jumped 11.2% last month and a staggering 59.9% over the past year. Overall energy prices posted their biggest annual increase since April 1980.
While acknowledging the inflation rate was “unacceptably high,” Biden argued that it was “out of date” as it did not reflect a clear drop in energy prices since mid-June.
The recent price drop had provided “important breathing room for American families. And, other commodities like wheat have fallen sharply since this report,” the president said in a statement.
Published in The Express Tribune, July 14th, 2022.
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