INFLATION IN THE US HITS 40-YEAR HIGH

Thu 14 July 2022:

Washington: The US inflation rate increased to 9.1% in June, driven up by increases in the cost of food, housing, and oil.

Since the end of November 1981, the 12-month increase in the inflation rate was the biggest.

The US Bureau of Labour Statistics said: “Over the last 12 months, the all items index increased 9.1 percent before seasonal adjustment.”

“The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.3 per cent in June on a seasonally adjusted basis after rising 1.0 per cent in May,” it said.

According to the Bureau, the increase was broad-based, with the indexes for gasoline, shelter, and food being the largest contributors.

The energy index rose 7.5 per cent over the month and contributed nearly half of the all items increase, with the gasoline index rising 11.2 per cent and the other major component indexes also rising.

The food index rose 1.0 percent in June, as did the food at home index.

The all items – less food and energy – index rose 5.9 per cent over the last 12 months. The energy index rose 41.6 percent over the last year, the largest 12-month increase since the period ending April 1980.

The food index increased 10.4 per cent for the 12-months ending June, the largest 12-month increase since the period ending February 1981.

The Bank of Canada on Wednesday raised its main interest rate by 100 basis points in a bid to crush inflation, surprising markets and becoming the first Group of Seven (G7) country to make such an aggressive hike in this economic cycle.

The European commission predicted record levels of inflation and slashed its GDP forecast for 2022 and 2023 as a result of war in Ukraine, crimped demand due to surging prices and the danger of winter energy shortages, Bloomberg News reported on Wednesday citing a draft of the projections.

Meanwhile, US President Joe Biden will on Friday fly to Saudi Arabia, where he will attend a summit of Gulf allies and call for those allies to pump more oil.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

___________________________________________________________________________________________________________________________________________

FOLLOW INDEPENDENT PRESS:

TWITTER (CLICK HERE)
https://twitter.com/IpIndependent