US Inflation marked a fresh high

US Inflation marked a fresh high

US inflation marked a fresh high of 9.1% in June, exceeding the estimated analysis and putting up further pressure on the Federal Reserve to reduce it with faster interest rates.

The labor statistics office said prices rose 1.3% only in the month, which was the largest monthly gain since 2005. That was mainly due to massive increases in food, energy, and shelter prices.

Peeling a more stable area from the consumer price index, the core price rose 0.7% from May, the biggest increase in a year. The labor statistics office said the increase was “broad-based,” although food, gasoline, and housing contributed half of the monthly increase.

The only bright spot in the report was that the annual rate for core CPI inflation edged down to 5.9% from 6.0%, although even this fell less than expected.

While the very strong annual inflation rate is largely influenced by the basic effects of the development of 12 months ago, the monthly level still shows extensive pressure and the ongoing price in the economy.

U.S. shares Futures decline and bonds rise on the news, which refers to a worse problem and is more persistent with inflation than previously assumed. This is the latest in the succession of the negative surprise in the consumer price index, which has repeatedly underestimated by Wall Street economists last year.

The news that “US inflation marked a fresh high” also struck other assets, pushing the euro below parity with the dollar for the first time in 20 years. The wider index of the dollar, which follows the greenback against an advanced economic currency basket, increased by 0.3% to 108.41, testing the 20-year peak that it reached on Tuesday.

Jason Furman, a senior fellow with Peterson Institute in Washington said for the second consecutive month, the goods inflation was higher than services inflation.