June’s inflation rate climbed higher than economists had predicted, hitting 9.1%, topping the expected 8.8% after May’s 8.6%. It is the largest 12-month increase since November 1981.
According to Vox, the inflation rate is not as bad as it was in 1979 – 1982, but it’s the worst Americans have witnessed in decades.
The Epoch Times reported the “core inflation rate,” which removes food and energy, eased to 5.9% but extended beyond the forecast 5.7%. Food prices have soared by 10.6%. Nearly every food item has gone up. Eggs spiked 33.1%, milk rose 16.4%, pork climbed 9%, chicken hopped up 18.6%, fruits and vegetables increased 8.1%, and coffee rose 15.8%.
The energy index bolted upward by 41.6%. Fuel oil exploded by 98.5%. Gasoline surged 59.9%, electricity costs ticked higher at 13.7%, and propane and kerosene made their way up 26.1%.
The financial markets reacted negatively to the latest inflation announcement, the indexes plunging in pre-market trading. The Dow Jones Industrial Average declined more than 300 points, the S&P 500 shed 1.5 percent, and the Nasdaq Composite Index fell 250 points.
The White House attempted to brace the public for a “hotter than expected” inflation rate. However, according to an Administration memo, the culprit for the robust increases is primarily driven by the war between Russia and Ukraine.
The Administration also indicated the June report was insufficient as it didn’t report the drop in energy and gas prices seen during the middle of June.
White House Press Secretary Karine Jean-Pierre said the inflation data was out-of-date while the White House continues to rebuff a coming recession.
The next player on the inflation front is the producer price index on Thursday. Economists forecast it to be at 10.7%, but we’ll wait and see.