World Economy

US Inflation at 6.5-Year High

US Inflation at 6.5-Year HighUS Inflation at 6.5-Year High

US consumer prices recorded their largest increase in nearly 6-1/2 years in the year through June, while the monthly pace continued to suggest a steady buildup of inflation that could keep the Federal Reserve on a path of gradual interest rate increases, Reuters reported. Other data on Thursday showed “US inflation continues to drift gradually higher in response to a nearly fully employed economy, with some nudging from tariffs,” said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. The labor department said its Consumer Price Index edged up 0.1% last month on moderate gains in gasoline prices and sharp declines in the cost of apparel and hotel accommodation. The CPI rose 0.2% in May. In the 12 months through June, the CPI increased 2.9%, the biggest rise since February 2012, after advancing 2.8% in May. With gasoline prices rising modestly and the cost of household utilities dropping in recent months, the increase in the annual inflation rate is expected to slow.

Add new comment

Read our comment policy before posting your viewpoints