U.S. consumer prices soared 9.1% compared with a year earlier, further pressuring households and likely sealing the case for another large interest rate hike
Surging prices for gas, food and rent catapulted U.S. inflation to a new four-decade peak in June, further pressuring households and likely sealing the case for another large interest rate hike by the Federal Reserve, with higher borrowing costs to follow.
Some economists have held out hope that inflation might be reaching or nearing a short-term peak. Gas prices, for example, have fallen from the eye-watering $5 a gallon reached in mid-June to an average of $4.66 nationwide as of Tuesday – still far higher than a year ago but a drop that could help slow inflation for July and possibly August.
In the immediate aftermath of the 2020 pandemic recession, as Americans focused their spending on items for the home, like furniture, appliances and exercise equipment, supply chains became overwhelmed and prices for physical goods soared. But as consumer spending has gradually shifted away from goods and toward services like vacation travel, restaurants meals, movies, concerts and sporting events, some of the highest price increases have occurred in services.
The persistence of high inflation has unnerved Chair Jerome Powell and other Fed officials, who are engaged in the fastest series of rate hikes since the late 1980s to try to slow the price spikes. The central bank is expected to raise its key short-term rate later this month by a hefty three-quarters of a point, as it did last month, with potentially more large rate hikes to follow.
Consumers have started to pull back on spending, home sales are falling as mortgage rates rise and factory output slipped in May. Yet steadily robust job growth points to an economy that is still expanding, with little sign of an imminent recession. And wholesale used car prices are also falling, which point to declining used car prices in the coming months.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Surging gas prices likely drove U.S. inflation to 40-year highGas prices feed new 40-year high for U.S. inflation
Read more »
Woman, 40, charged in human trafficking investigation: Toronto policeWoman charged in human trafficking investigation
Read more »
Investor got 'death threats' for making this correct call, now he's predicting 40% housing crashA 20% to 40% crash in your home price may be coming, says Peter Grandich. This is what to do to protect yourself: 👈 davidlin_TV investing gold realestate KitcoNEWS housing housingmarket
Read more »
Gold price falls to session lows as U.S. CPI rises 9.1% in June(Kitco News) - The gold market remains under pressure as inflation, falling to session lows after inflation pressures rose more than expected in June.
Read more »
Trial date for four men charged in Alberta border blockade case scheduled for June 2023The four men were among 14 people charged in February after RCMP found a cache of guns, body armour and ammunition in trailers at the protest near Coutts, Alta.
Read more »
Court docket: June 30-July 6, 2022Sentences for offences committed in Prince George and area
Read more »