Retail inflation skyrocketed more than expected last month, hitting a more than four-decade high, as prices for food, gas, and housing continued to soar.
The Labor Department’s Consumer Price Index (CPI) jumped at an annual rate of 9.1%, up from 8.6% in May and the most since November 1981. Economists had predicted a rise of 8.8%. The one month increase of 1.3% was also higher than estimates.
Remember the Federal Reserve once mentioned last November that “inflation is transitory”? Guess what, it’s definitely NOT.
The “core” CPI, which leaves out volatile food and energy prices, was up 5.9% year-over-year and 0.7% from May, both above forecasts. Energy prices rose 7.5% from the previous month and contributed to nearly half of the overall gain. Gas prices were 11.2% higher, and 59.9% more than a year ago.
Food price also advanced 1%, with an annual increase of 10.4%. Since last June, prices for food at home gained 12.2%, the largest 12-month jump since April 1979, while prices for food away from home were up 7.7%, the most since November 1981.
Costs for shelter, which make up about one-third of the CPI, climbed 0.6% for the month and 5.6% year-over-year. The Labor Department noted among the few major components of the index that registered monthly price declines were lodging away from home (-2.8%) and air fares (-1.8%).
The cost of surviving is getting higher and higher…