Consumer prices reached a 9.1% annual rate in June, a pace not seen in 41 years, according to The Wall Street Journal (subscription). That’s a jump from May’s annual rate of 8.6%.
More numbers: “Core prices, a measure that strips out volatile food and energy components, increased by 5.9% in June from a year ago, a slightly slower pace than May’s 6%, the Labor Department said Wednesday.”
- “On a month-to-month basis, core prices accelerated slightly to 0.7% in June compared with the prior month, when they rose by 0.6%.”
The NAM says: NAM Chief Economist Chad Moutray gave us his read on the situation:
- “Overall, price pressures for consumers are likely to remain extremely elevated over the coming months, with strong growth for food and energy costs and lingering supply chain headwinds.”
- “The easing of year-over-year growth rates in the latest core inflation data offered some comfort, and with more favorable comparison months moving forward, core price growth on a year-over-year basis should continue to moderate somewhat, while remaining very elevated.”
The Fed forecast: Moutray added, “These data will continue to put pressure on the Federal Reserve to act aggressively and decisively on inflation. The Federal Open Market Committee increased the federal funds rate by 75 basis points at its June 14–15 meeting, and it will make a similar move at its July 26–27 meeting.”