Washington: US annual consumer prices increased by 9.1% in June, the highest rate in much more than four decades, forcing people to spend more money on rent, food, gas, and other necessities. The Federal Reserve is also expected to increase interest rates by some other 75 percentage point at the end of the month.
The employment figures indicated but the Us central bank’s hawkish central bank had made little headway in reducing demand and getting inflation under control to its 2 percent objective. The report came after greater job growth in June.
Even though it is a worldwide issue, US President Joe Biden and the Democratic Party are at political risk as the November congressional elections approach due to persistently high inflation.According to Christopher Rupkey, chief economist of FWDBONDS in New York, “the economy looks to be sliding into a higher inflation environment, despite the Fed’s best wishes.” “After today’s explosive news, the Fed is even more behind the curve.”
After rising 1.0 percent in May, the price index jumped by 1.3 percent last month, the largest monthly advance since September 2005. Nearly 50% of the rise in the CPI was attributed to an increase of 7.5% in energy prices. After recovering by 4.1 percent in May, gas prices increased by 11.2 percent. Since reaching record highs in June, gas prices have significantly decreased.
More since October 2005, the price of natural gas increased by 8.2 percent. The price of food purchased at home increased by 1.0 percent, marking the sixth consecutive month with at least a 1.0 percent increase.