The Consumer Price Index (CPI) went up 9.1% from 12 months ago after experts predicted an 8.8% increase.
The 9.1% includes fuel and food, which are considered volatile. Without fuel and food the core CPI increased 5.9%:
On a monthly basis, headline CPI rose 1.3% and core CPI was up 0.7%, compared to respective estimates of 1.1% and 0.5%.Taken together, the numbers seemed to counter the narrative that inflation may be peaking, as the gains were based across a variety of categories.“CPI delivered another shock, and as painful as June’s higher number is, equally as bad is the broadening sources of inflation,” said Robert Frick, corporate economist at Navy Federal Credit Union. “Though CPI’s spike is led by energy and food prices, which are largely global problems, prices continue to mount for domestic goods and services, from shelter to autos to apparel.”
The gasoline index rose 59.9%, which is the most since March 1980.
Energy went up 7.5% in June after a 3.9% increase in May. The energy index increased 41.6% from 12 months ago.
The food at home index rose 12.2% over the past 12 months, which is the largest since April 1979.
Rental costs went up 0.8%, the biggest increase since April 1986.
Medical went up 0.7%. Dental costs climbed 1.9%, the largest since 1995.
The CPI report will likely make the Fed act:
“Rather than cooling down, inflation is heating up,” Sal Guatieri, senior economist at BMO Capital Markets, said in a note. “While a pullback in gasoline costs in July and reported retail discounting will help tamp down the flames, the broad pressure in the core rate, led by plenty of inertia in rents, suggests inflation may not peak for a while, and might remain stubbornly high for longer than anticipated.”Fed policy makers have already signaled a second 75 basis-point hike in interest rates later this month amid persistent inflation as well as still-robust job and wage growth. Even before the data were released, traders had already fully priced in such a move. Now, they also see around a one-in-three chance that it could be a full percentage point.
Bottom line: Inflation is out of control and no one has any idea what to do about it.
Putin’s price hike, y’all.
June 2022 CPI by Mary Elizabeth on Scribd
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