Newsinc24 Team In US, inflation reached a four-decade high in June, with consumer prices soaring by 9.1 percent compared to the previous year, as said by the US government said. The Bureau of Labor Statistics said prices were up 1.3 percent in June compared to May. According to media reports, it is the biggest consumer price hike since 1981 and alone is up from an 8.6 percent price hike in May. The largest increase from May to June was the 7.5 percent increase in the energy index, which contributed to nearly half of the overall increase in inflation.
The increase in prices is putting further pressure on US households, likely to lead the Federal Reserve to hike interest rates significantly again. US Federal Reserve Chair Jerome Powell has sought the most aggressive series of rate hikes in the US since the 1980s to tamp down the effects of inflation. The Federal Reserve is now expected to raise interest rates by three-quarters of a point later this month, with more rate hikes to follow. Americans expect slower inflation increases over the longer run than they had in recent months. Grocery prices have jumped 12.2% compared with a year ago, the steepest such climb since 1979. Rents have risen 5.8%, the most since 1986. Pay increases have slowed. And surveys show that Americans’ expectations for inflation over the long run have eased — a trend that often points to more moderate price increases over time.
