07/13/2021

Prices Rise 5.4 Percent in June Over Last Year, Largest Spike Since 2008

Inflation continues as economy keeps recovering

Prices rose 5.4 percent in June compared with one year ago, reflecting upward surge in inflation throughout the economy, as more consumers open their wallets and supply chains struggle to bounce back from pandemic pressures.

Data released by the Bureau of Labor Statistics on Tuesday showed that prices rose 0.9 percent in the past month, a hike after prices also rose 0.6 percent in May. The price hike in June marked the largest 1-month spike since June 2008.

Still, policymakers at the Federal Reserve and White House continue to predict that as the economy has time to heal, the surge in inflation will cool and overall prices will settle back down. They maintain that the sharp increases are a temporary feature of a bumpy economic recovery. Their expectation is that inflation will simmer down closer to the Fed’s 2 percent annual target next year and in 2023.

Please select this link to read the complete article from The Washington Post.