Consumer prices surge by most since August 2008

Forbes chairman and editor-in-chief Steve Forbes explains why he thinks inflation is ‘here for a while.’

U.S. consumer prices rose last month at the fastest pace since August 2008.

The Labor Department said Tuesday that the consumer price index rose 0.9% in June, faster than the 0.6% increase in May. Analysts surveyed by Refinitiv were expecting a 0.5% gain.

USED CAR PRICES STEER TOWARD FED CHAIRMAN POWELL’S INFLATION HUNCH

Used car prices spiked 10.5% last month, accounting for more than one-third of the increase. Additionally, energy prices climbed 1.5% month over month and food prices rose 0.8%.

Prices rose 5.4% year over year, and have been trending higher every month this year. Analysts surveyed by Refinitiv were expecting prices to rise 4.9% annually.

The annual data has a “base effects” skew due to the decline in prices that occurred at the start of the pandemic. 

Core prices, which exclude food and energy, rose 0.9% in June, quicker…

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