US inflation jumps 9.1 percent in June to fresh four-decade high
Al JazeeraThe rise in the CPI gives the Federal Reserve – the US central bank – free rein to hike interest rates further later this month. US inflation roared again to a fresh four-decade high last month, likely strengthening the Federal Reserve’s resolve to aggressively raise interest rates that risks upending the economic expansion. The consumer price index rose 9.1% from a year earlier in a broad-based advance, the largest gain since the end of 1981, Labor Department data showed Wednesday. “While a pullback in gasoline costs in July and reported retail discounting will help tamp down the flames, the broad pressure in the core rate, led by plenty of inertia in rents, suggests inflation may not peak for a while, and might remain stubbornly high for longer than anticipated.” Fed policy makers have already signaled a second 75 basis-point hike in interest rates later this month amid persistent inflation as well as still-robust job and wage growth. Used car prices, which were a major contributor to inflation last year, rose 1.6% from a month ago, while new vehicle prices increased 0.7%.