The Bureau of Labor Statistic’ Consumer Price Index for June was released this morning, and the read is grim: U.S. inflation had a year-over-year increase of 9.1% in June, the highest rate in nearly 41 years. This reading was higher than the prior 40-year high of 8.6% in May.
The continued surge in inflation across the United States was elevated by broad-based increases, including food costs and gasoline prices, which topped more than $5 per gallon at the pump last month.
On a monthly basis, the broadest measure of inflation rose at a pace of 1.3%, up from 1% in May. This marked the largest monthly increase since 2005.
Core CPI, which excludes the more volatile food and energy components, rose 5.9% in June compared to 6.0% in May.
Stocks fell at today’s market open after the release of the data. The S&P 500 dropped 1.3% at the open, while the Nasdaq shed 1.7% and the Dow fell 1.1%. Investors are closely watching for clues about the outlook for central-bank policy and the wider economy.
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