That’s the highest level in more than 40 years and higher than the previous reading, when prices rose by 8.6% for the year ended in May. It is also much higher than the 8.8% that economists had predicted, according to Refinitiv.
The Consumer Price Index for June also showed that overall prices that consumers pay for a variety of goods and services rose by 1.3% from May to June.
The increases, however, were felt across all categories. Prices for food at home were up 12.2% over the year, with cereals up 12.2%, dairy up 13.5%, and meats up 13.8%.
Stripping out food and energy costs, which tend to represent transitory fluctuations, core CPI prices rose by 0.7% over the same period and by 5.9% for the 12-month period ended in June.
The Federal Reserve pays particular attention to that core data when assessing future inflationary trends, and the latest numbers likely give the central bank a green light to continue with its aggressive series of rate hikes to cool off the economy and bring down higher prices. The Fed is widely expected to raise its benchmark interest rate by at least 75 basis points at its next monetary policymaking meeting on July 26-27.
This story is developing and will be updated.
