US inflation reaches new 40-year high in June

WASHINGTON, 13th July, 2022 (WAM) — 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, Associated Press reported.

Consumer prices soared 9.1 percent compared with a year earlier, the government said Wednesday, the biggest yearly increase since 1981, and up from an 8.6 percent jump in May.

From May to June, prices rose 1.3 percent, another huge increase, after prices had surged 1 percent from April to May.

The persistent price acceleration has underscored the brutal impact inflation has inflicted on Americans, with the costs of necessities, in particular, rising much faster than average incomes.