3 reasons not to panic about decades-high inflation

When the latest data on consumer prices in the United States landed Wednesday, the headline number was ugly.

Inflation surged to 9.1% in June, according to data from the Bureau of Labor Statistics. That was higher than economists polled by Refinitiv were forecasting.

It was also much higher than the 8.6% rate logged in May, which rattled financial markets and pushed the Federal Reserve to hike interest rates more aggressively — renewing fears about whether the central bank could tame inflation without triggering a recession.

Investors were bracing for a surprise. But there’s reason to...