SURPRISE: U.S. Inflation Reaches New Four-Decade High of 9.1%

Posted on 07/13/2022

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U.S. consumer inflation rose last month from the year before at the highest rate in more than four decades. Soaring gas prices, rising rents, and expanding grocery bills made everyday life more expensive for American households. The U.S. Consumer Price Index (CPI) rose 9.1% in the 12 months ended in June 2022, the fastest pace since November 1981, according to the U.S. Department of Labor. The June 2022 increase also surpassed May 2022’s 8.6% rate. The U.S. national average cost of a gallon of unleaded gas peaked at about US$ 5 last month.

U.S. workers are experiencing the biggest decline in years in inflation-adjusted pay. U.S. wages are up 5.1% in past year as inflation is up 9.1%.

Keywords: Federal Reserve System.