Inflation jumps to 9.1%, highest in four decades

Inflation accelerated to an explosive 9.1% for the 12 months ending in June, according to the consumer price index, the highest level in four decades.

The much-anticipated numbers reported by the Bureau of Labor Statistics on Wednesday revealed that inflation is still soaring, despite the Federal Reserve's interest rate hikes, and is near the worst it has been since the Great Inflation that helped bring President Ronald Reagan to office.

The soaring inflation has eaten into President Joe Biden’s approval ratings as the midterm elections approach. Consumer prices have been rising fast since last August, especially for staples such as food and gas. In fact, until March’s CPI report, inflation had risen every month for eight months.

Rising energy prices accounted for half the total inflation, with the gasoline index rising a whopping 11.2%.

So-called core CPI, which strips out volatile food and energy prices, increased 5.9%.

“The offenders again were all too familiar to consumers, those being gasoline, food, and shelter. With their sentiment at the lowest level in years, consumers have a right to be highly distraught. They’re facing a combination of high and sustained inflation robbing them of purchasing power," said Mark Hamrick, a senior economic analyst at Bankrate.

The Fed announced in March that it would raise its interest rate target by a quarter of a percentage point, the first rate hike since 2018, in an effort to rein in the higher prices, although some economists and many Republicans say the central bank should have moved sooner to reverse its pandemic emergency measures.