Inflation rises beyond the expected in June
In June, inflation has started advancing at its fastest pace in nearly 13 years as used vehicle costs and
price in food and energy surge, according to the Labor Department.
The consumer price index jumped 5.4% from a year earlier, marking the largest jump since August 2008,
Economists surveyed by Dow Jones had been forecasting a 5% gain, as reported by CNBC.
“What this really shows is inflation pressures remain more acute than appreciated and are going to be
with us for a longer period. We are seeing areas where there’s going to be ongoing inflation pressure
even after we get past some of those acute price hikes in a handful of sectors,” stated Sarah House,
senior economist for Wells Fargo’s corporate and investment bank.