This spring, the idea that inflation rose in March. Now.
Economists believe inflation rose in June, reaching its highest level during the pandemic. The general consensus is that the consumer price index for Wednesday will show a price increase of 8.8%, the highest since 1981.
Compared to May, the index will increase by 1.1%. The index has increased by one percent in the last three months to two.
This represents an acceleration in inflation from 8.6% annualized reported in May. Until recently, many economists expected annual inflation to slow as prices rose sharply last year. A year ago, prices rose 1 percent in June, after rising 0.6 percent in May and 5.6 percent over the previous 12 months.
Core inflation, which does not include fuel and food prices, is expected to rise moderately by 5.8 percent, following an annual increase of 6 percent in May. Core inflation is expected to rise to 0.6 percent monthly in line with the previous month’s increase.
Energy prices are expected to increase by more than seven percent in June due to rising oil and fuel prices. Food prices continued to rise in June, though perhaps at a slower pace than the 1.4 percent monthly increase seen in May. Food prices increased by 11.9% in May compared to the previous 12 months.
Core commodities excluding energy and food are likely to rise 0.5 percent, Bank of America analysts said. They see that essential services will also grow at this cost.
The Fed said it plans to raise its interest rate target by 75 basis points at its July meeting, which will begin in two weeks. A very weak inflation report will likely be required for the Fed to reject that figure.
Source: Breitbart
