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Inflation Rises to 9.1% in June, Highest since November 1981

Inflation has been a huge topic of conversation across America for some time now, and it doesn’t look like that is going to change. The Bureau of Labor Statistics’ Consumer Price Index (CPI) reflected a year-over-year increase of 9.1% last month, up from the previous 8.6% in May which at the time was a 40-year high. Economists were predicting inflation to rise only to 8.8% as per their estimates.

The numbers across all industries

Month to month, inflation has been on the rise at a pace of around 1.3%, increasing from 1% in May. Economists originally were predicting a 1.1% climb, however, the 1.3% increase marks the largest percentage-wise increase since 2005. This continued surge has been elevated by many different increases in consumer goods like high food costs and record gasoline prices, which reached over $5 a gallon for many Americans last month.

“Core CPI” or “The Core Consumer Price Index”, which measures the changes in the price of goods and services, excluding food and energy, rose 5.9% in June, compared to a 6.0% increase in May. Many economists expected more of a drop from last month, with their expected number being 5.7%.

The reports energy index focuses on tracking specific indicators, to measure the energy system performance of 125 countries. The report showed an increase of 7.5% and a 41.6% increase over the last year, which marks the largest year-end increase in 43 years. Reports tracking food pricing have increased 1% over the last month and 10.4% annually, the largest increase in a 12-month period since January of 1981.

Wrap up

Inflation doesn’t seem like it’s slowing down, making it tough for many Americans who have to constantly adjust to the ever-changing prices of consumer goods. The rapid increase is making the value of everyone’s week-to-week paychecks rapidly decrease. Keeping up with inflation at this stage can be a challenge, so it should be important to keep in contact with your trusted financial advisor for updates on the ever-changing economy.

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