Inflation Rose Over 9% Over the Last Year

The June CPI report is out and it’s another strong one. Over the past 12 months ending in June, consumer prices rose by 9.06%. Wall Street had been expecting an increase of 8.8%.

The core rate rose by 5.92%. Wall Street was looking for an increase of 5.7%.

Over the last month, headline inflation rose by 1.3% while core inflation was up by 0.7%.

Energy prices surged 7.5% on the month and were up 41.6% on a 12-month basis. The food index increased 1%, while shelter costs, which make up about one-third of the CPI rose 0.6% for the month and were up 5.6% annually. This was the sixth straight month that food at home rose at least 1%.

Rental costs 0.8% in June, the largest monthly increase since April 1986, according to the BLS.

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Much of inflation rise came from gasoline prices, which increased 11.2% on the month and just shy of 60% for the 12-month period. Electricity costs rose 1.7% and 13.7%, respectively. New and used vehicle prices posted respective gains of 0.7% and 1.6%.

Medical care costs increased 0.7% on the month, propelled by a 1.9% increase in dental services, the largest monthly change ever recorded for that sector in data that goes back to 1995.

Airline fares were one of the few areas seeing a decline, falling 1.8% in June though still up 34.1% from a year ago. The meat, poultry, fish and eggs category also fell 0.4% for the month but is up 11.7% on an annual basis.

The S&P 500 looks to open down 1.76%.

Posted by on July 13th, 2022 at 9:06 am


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