Inflation in the United States soared 1.3% in Junedriven by the record increase in gasoline prices, year-on-year index reached a record in more than four decades, according to official data published on Wednesday.
The Consumer Price Index (CPI) increased 9.1% in the last 12 months, the largest annualized increase since November 1981, compared to 8.6% for the year ended in May, reported the Department of Labor. “The figure represents a new blow to the Joe Biden government that has been trying to curb inflation for several months,” the operators said.
Consequently, now the focus is on the Federal Reserve and its decision on whether to maintain the expected interest rate hike pace or speed it up.
In its last meeting on June 15, the Fed increased the interest rate by 0.75% to a range between 1.5% and 1.75%, in what was the strongest rise in the last 30 years. It was the third adjustment made by the body in charge Jerome Powell in 2022.
After that debate, the Fed confirmed a growth path for the reference rate until reaching 3.4% at the end of the year, and saw a new adjustment of 0.75% in July as “very possible”.
Source: Ambito
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