U.S. consumer prices rose by the most in 13 years in June amid supply constraints and a continued rebound in the costs of travel-related services from pandemic-depressed levels as the economic recovery gathered momentum.
The consumer price index increased 0.9 percent last month, the largest gain since June 2008, after advancing 0.6 percent in May, the Labor Department said on Tuesday.
In the 12 months through June, the CPI jumped 5.4 percent. That was the largest gain since August 2008 and followed a 5.0 percent increase in the 12 months through May. Excluding the volatile food and energy components, the CPI accelerated 0.9 percent after increasing 0.7 percent in May.
The so-called core CPI surged 4.5 percent on a year-on-year basis, the largest increase since November 1991, after rising 3.8 percent in May. Annual inflation rates have been boosted by the dropping of last spring’s weak readings from the CPI calculation. These so-called base effects are leveling off.
Economists polled by Reuters had forecast the overall CPI would climb 0.5 percent and the core CPI would rise 0.4 percent.
COVID-19 vaccinations, low interest rates, and nearly $6 trillion in government relief since the pandemic started in the United States in March 2020 are fueling demand, straining the supply chain, and raising prices across the economy.
A global semiconductor shortage has undercut motor vehicle production, pushing up prices of used cars and trucks—the major driver of inflation in recent months. – READ MORE
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