Inflation soars to a 13-year high as consumer prices soar.
According to the latest statistics from the US Department of Labor, inflation increased by 5.4 percent in June, the highest increase in nearly 13 years.
Vehicle, food, and energy prices all rose dramatically during the month as the pandemic loomed large, despite evidence of an economic rebound.
The Consumer Price Index (CPI) has risen at its fastest rate since August 2008, according to the Labor Department. The index has been rising since January, according to the agency.
Consumer prices grew 0.9 percent in June over the previous month, and 5.4 percent over the previous year, according to the data.
Stock market futures fell after the data was released, but government bond yields were neutral, according to CNBC.
According to the statistics, automobile and truck costs increased by 10.5 percent in June, while food prices increased by 0.8 percent for the month and 2.4 percent over the previous year. In June, energy costs jumped 1.5 percent, with the gasoline index rising 2.5 percent month over month and 45.1 percent year over year.
According to the Associated Press, the Federal Reserve has warned that rising costs are due to supply shortages and short-term supply chain interruptions that will pass when the economy recovers quickly.
High demand for products like semiconductor chips and paper has resulted in component shortages and higher production prices. Supply disruptions and logical problems have also played a role.
According to the Associated Press, the Fed wants to keep inflation at 2% on average. There was no immediate hint on how it planned to change its budgetary policy to counteract the inflationary trend.