Annual Inflation Rises to 40-Year High of 9.1%
AllSides Summary
The Bureau of Labor Statistics reported Wednesday that inflation rose 9.1% for the year ending in June, the latest in a series of 40-year highs for the annual inflation rate.
Late 1981 was the last time annual inflation was this high. The Consumer Price Index (CPI) increased 1.3% in June on a monthly, seasonally-adjusted basis after rising 1% in May. Items with the largest annual cost increases were fuel oil (up 98.5% from June 2021), gasoline (up 69%), food at home (up 12%), and new vehicles (up 11%). The energy index also saw the biggest overall monthly jump, increasing 7.5% in June after rising 3.9% in May.
Core prices, which exclude more volatile food and energy items, rose 0.7% on a monthly basis and 5.9% from the previous year. The inflation rate has increased for eight consecutive months despite the Federal Reserve's interest rate hikes, and is affecting President Joe Biden's approval rating as the 2022 midterm elections approach and as 2024 presidential candidates begin to emerge.
June's inflation data was a top story across the political spectrum, especially from right-rated sources, which continue to frame President Joe Biden's clean energy agenda and large government stimulus packages as inflation's main drivers. Left-rated sources focus more on how global factors, such as supply chain issues and Russia's invasion of Ukraine, are inflating prices.
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From the Center
U.S. Inflation Hits New Four-Decade High of 9.1%
U.S. inflation reached 9.1% in June, its highest rate in nearly 41 years, the Labor Department said.
The consumer-price index’s pace for June eclipsed May’s annual rate of 8.6% that led Federal Reserve officials to shift to a faster pace of benchmark interest-rate increases, according to meeting minutes released last week.
Core prices, a measure that strips out volatile food and energy components, increased by 5.9% in June from a year ago, a slightly slower pace than May’s 6%, the Labor Department said Wednesday. On a month-to month basis, core prices...
From the Left
US Inflation Quickens to 9.1%, Amping Up Fed Pressure to Go Big
US inflation roared again to a fresh four-decade high last month, likely strengthening the Federal Reserve’s resolve to aggressively raise interest rates that risks upending the economic expansion.
The consumer price index rose 9.1% from a year earlier in a broad-based advance, the largest gain since the end of 1981, Labor Department data showed Wednesday. The widely followed inflation gauge increased 1.3% from a month earlier, the most since 2005, reflecting higher gasoline, shelter and food costs.
Economists projected a 1.1% rise from May and an 8.8% year-over-year increase, based...
From the Right
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...
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