Inflation Reaches 9.1%, Again Breaking Projections Of US
Inflation surged in June, exceeding expectations by a wider margin than previously thought. This emphasizes persistent price pressures that keep the Federal Reserve on track for another big interest-rate increase towards the end of the month.
The consumer price index rose 9.1% in the year ending in March, the greatest increase since the end of 1981, according to Labor Department data on Wednesday. The latest reading on inflation shows that it increased 1.3% from a month earlier. This increase is due to the rising costs of gasoline, housing, and food.
The median forecast predicted an annual growth rate of 8.8% in the Bloomberg poll, while economists expected a 1.1 percent rise in May.
The so-called core CPI, which removes the more volatile food and energy components, grew 0.7 percent from the previous month and 5.9 percent from a year ago. This number was above expectations.
The rising inflation numbers show that the pressure on prices is happening all over the economy and it is making people lose money and confidence. The Federal Reserve’s accelerated pace of interest rate hikes will continue to control demand, and it puts pressure on President Joe Biden and congressional Democrats who are facing a tough re-election fight.
Many economists think that this data is the highest point of the present inflationary cycle. However, several factors, like housing, are likely to keep price increases going for a longer period of time.
There are some risks to our economy that come from things like oil supply disruptions in Iran, China’s Covid lockdowns, and Russia’s ongoing war in Ukraine. These can all cause problems with our supply chains and inflation.
Fed policymakers have already signaled that they will raise interest rates by another 75 basis points later this month. This is because inflation is still high as well as job and wage growth.
For more such updates stay tuned with the GameStanza