No breath. In the United States, inflation accelerated again in June to 9.1% per year and 1.3% per month according to the CPI index. This is more than market expectations, which were +8.8%. And it remains an all-time record since 1981.
Inflation had already hit a four-decade high in May, at 8.6% in a year and 1.0% in a month.
The rise in prices affects all sectors, the Labor Department said in a statement, with housing, gasoline and food indices contributing the most.
Energy prices rose 41.6% year-on-year, posting their biggest rise since April 1980.
+41% for energy, +10% for food
As for food prices, they experienced their biggest increase since February 1981, rising 10.4% in one year.
According to the United States Energy Agency (EIA), the average price of gasoline in the United States last month exceeded 5 dollars per gallon (about 3.8 liters), something unprecedented in the country.
Among the few goods or services that have declined are vacation rentals and airline tickets.
The basic price index, which excludes those of energy and food products, rose 0.7% in one month after +0.6% in May, and in one year its rise stood at 5.9% after +6.0% in May.
This large-scale increase could encourage the US central bank to raise key rates further after raising them by three-quarters of a percentage point in June, their biggest increase since 1994.
This open door to even tighter monetary policy in the United States caused the euro to plummet below the symbolic threshold of one dollar, which had not been crossed since December 2002.
For Joe Biden, these inflation figures are “too high” but also “obsolete” because they do not yet reflect the fall in the price of gasoline.
“Today’s data does not reflect the full extent of nearly 30 days of lower gasoline prices,” said the US president, whose approval rating is being hit hard by inflation.
Source: BFM TV
