Inflation soars to 9.1%, a record since 1981
The U.S. year-on-year inflation rate stood at 9.1% last June, half a percentage point above the rise in prices in May and its highest level since November 1981, according to the U.S. Bureau of Labor Statistics.
Energy inflation was 41.6%, the highest since April 1980, while food prices rose 10.4% on the year, the largest increase since February 1981.
Excluding the impact of food and energy, the U.S. core inflation rate in June was 5.9%.
Compared to May, June’s monthly inflation rate was 1.3%, accelerating three-tenths from May’s monthly figure.
After US central bank chairman Jerome Powell surprised the market in June with the largest interest rate hike since 1994, this development is a bet that this trend will continue.
This interest rate development has pushed the euro below the dollar for the first time in 20 years, the day after the two currencies reached parity, something not seen in two decades.