CPI

Surging gasoline prices last month drove the rate of U.S. inflation to a nearly 41-year peak of 9.1%, offering little hope of help soon for Americans...

The average price of a gallon of gas in the U.S. topped $5 for the first time ever. Rents have risen 5.8% in the last 12 months. Food prices climbed a 1% last month, however, and show little sign of coming down. Indeed, gas prices have fallen sharply in the past month. The good news? Yet many economists are doubtful the Fed can succeed in achieving what is referred to as a “soft landing.” Unless inflation relents soon, the Fed will keep jacking up interest rates. Consumers face unpalatable decisions on what to buy and what to forego. Worker wages aren’t keeping up with price increases — real hourly wages have fallen 3.1% in the past year. The increase in inflation over the past year rose to 9.1% to 8.6%. The last time inflation was so high was in November 1981. The Fed views the core rate as a more accurate measure of future inflation trends because gas and food prices tend to go up and down quickly and usually don’t stay high for very long. The numbers: Surging gasoline prices last month drove the rate of U.S. inflation to a nearly 41-year peak of 9.1%, offering little hope of help soon for Americans suffering from a high cost of living.

The consumer price index increased 9.1% from a year ago in June, above the 8.8% Dow Jones estimate. Excluding food and energy, core CPI rose 5.9%, ...

"The challenge we face today is it's not that 1-3 percent anymore, it's 10 to 20 percent depending on what cost bucket you're talking about." Much of inflation rise came from gasoline prices, which increased 11.2% on the month and just shy of 60% for the 12-month period. Energy prices surged 7.5% on the month and were up 41.6% on a 12-month basis. Airline fares were one of the few areas seeing a decline, falling 1.8% in June though still up 34.1% from a year ago. How do we look at the costs coming in?" That has come as wheat futures have fallen 8% since July 1, while soybeans are down 6% and corn is off 6.6% during the same period. That marked another month of the fastest pace for inflation going back to December 1981. Corporate profits, however, have increased just 1.3% in aggregate since the second quarter of 2021, when inflation took hold. But I do think we're on an upswing." Traders upped their bets on the pace of interest rate increases ahead. "For probably 10 to 15 years before the pandemic, the industry fell into a stable routine where costs up across the board somewhere between 1 to 3 percent a year. Electricity costs rose 1.7% and 13.7%, respectively.

US Inflation Quickens to 9.1%, Amping Up Fed Pressure to Go Big · Consumer price index climbed 1.3% from May, most since 2005 · Increase reflected higher gasoline ...

The inflation report, released Wednesday morning by the Bureau of Labor Statistics, showed June prices rose 1.3 percent, compared with prices the month before, ...

The Fed hiked interest rates by three-quarters of a percentage point in June, marking its sharpest increase since 2000. That decline heightened concerns that the Fed is losing the confidence of the public and financial markets — a major challenge in its fight against inflation. High inflation has clobbered Biden’s popularity, and last month’s run-up in gas prices to a nationwide average topping $5 a gallon made more people feel even gloomier about the economy. President and co-owner Janice Jucker said she expects that the war in Ukraine could send prices for flour even higher by the holidays, the busiest time of the year. “Working families are struggling to make ends meet as they continue to face the worst inflation in more than 40 years,” Sen. John Barrasso (R-Wyo.) said in a statement. The latest test is high inflation, which has sent prices for key ingredients like honey and unsalted butter soaring. … Working families in Wyoming cannot afford to pay the huge price of President Biden’s failed economic agenda.” In Houston, Three Brothers Bakery has been open for 73 years, most recently surviving a fire, Hurricane Harvey and the 2021 Texas freeze. Officials at the Federal Reserve and White House are desperate to see policies intended to crack down on inflation yield more results. There’s hope that upcoming inflation data will ease down a bit, as energy and gas prices have fallen consistently in the past month. The food index rose 1 percent in June and is up 10.4 percent, compared with the previous year, the largest 12-month increase since February 1981. Driving the stunning jump was the energy index, which rose 7.5 percent, compared with May, and contributed nearly half of the overall increase in inflation.

A hotter-than-expected core CPI figure could bring renewed selling pressure to the bitcoin market.

U.S. Inflation Gauge Jumps to Fresh 4-Decade High of 9.1%; Bitcoin Falls

The Consumer Price Index rose 9.1 percent from a year ago, a 40-year high that defied expectations of moderating price pressures.

Higher prices at least aren’t deterring shoppers from buying drinks and snacks, PepsiCo said in its earnings report on Tuesday, leading the company to raise its forecast for revenue this year, citing the “resilience” of consumer spending. A so-called “core” inflation index, which strips out volatile food and fuel prices to get a better sense of underlying price pressures, picked up by 5.9 percent in June from a year earlier. That rapid-fire policy response comes as the Fed gets nervous that high inflation could become a more permanent part of the economy if it is not decisively counteracted. Food prices continued to be one of the largest contributors to inflation, rising 10.4 percent in the year leading up to June, the biggest annual increase since 1981. Biden administration officials are bracing for another jump in inflation, but warning that the report, which is for June, will not reflect the recent decline in gasoline prices that has been driven by falling global oil prices. “The Fed is going to have to slow the economy materially and in a much faster fashion than if inflation was lower or at least starting to respond,” Mr. Ryan said. It’s a clear sign that despite a small moderation in core inflation, which strips out food and energy prices, investors are betting that the Fed will remain aggressive in its attempts to pull inflation down by raising interest rates. Many central bankers have been clear that they want to make another 0.75-point increase in July, and that they hope to raise rates into the neighborhood of 3.5 percent by the end of the year. Food prices rose 10.4 percent in the year leading up to June, the biggest annual increase since 1981. For example, the European Central Bank is planning to raise rates for the first time in more than a decade next week, by a quarter-point. Inflation remained painfully elevated in June, with the Consumer Price Index climbing 9.1 percent from a year earlier, the fastest pace since 1981. The inflation index including food and gas could slow down in July’s data because prices at the pump have moderated in recent weeks.

While today's headline inflation reading is unacceptably high, it is also out-of-date. Energy alone comprised nearly half of the monthly increase in.

I will continue my historic release of oil from our strategic petroleum reserve. Oil and gas companies must not use this moment as an excuse for profiting by not passing along savings at the pump. Here is what I will do: First, I will continue to do everything I can to bring down the price of gas. Today’s data does not reflect the full impact of nearly 30 days of decreases in gas prices, that have reduced the price at the pump by about 40 cents since mid-June. Those savings are providing important breathing room for American families. Energy alone comprised nearly half of the monthly increase in inflation.

The Bureau of Labor Statistics released the June Consumer Price Index data this morning. The year-over-year non-seasonally adjusted Headline CPI came in at ...

The food index increased 10.4 percent for the 12-months ending June, the largest 12-month increase since the period ending February 1981. The all items index increased 9.1 percent for the 12 months ending June, the largest 12-month increase since the period ending November 1981. The energy index rose 41.6 percent over the last year, the largest 12-month increase since the period ending April 1980. The food index rose 1.0 percent in June, as did the food at home index. Over the last 12 months, the all items index increased 9.1 percent before seasonal adjustment. The increase was broad-based, with the indexes for gasoline, shelter, and food being the largest contributors.

CPI breakdown: Some of the largest price increases in June were gas, butter and margarine. Overall inflation hit a new 40-year high of 9.1%

Overall food prices increased by 1% last month, accounting for 10% of the overall price level increase. Bad weather in the U.S. also contributed to softer than usual wheat production. And housing, which rose by 0.8%, accounted for 26% of the overall increase. Cows are producing less milk in part because feeding costs have gone up, the USDA said. Flour prices rose by 5.3% last month, and are up 19.2% over the past 12 months at a nonseasonally adjusted rate. Inflation hit another record high last month.