Inflation rn

US inflation rose 9.1% in June compared to the previous year, according to the Consumer Price Index published yesterday, the highest annual rate since 1981.

💰 A deeper dive… The numbers appear to counter the narrative that inflation has peaked, since price gains were seen across a variety of categories, per CNBC.

• Energy prices increased 7.5% in June, largely thanks to an 11% jump in the price of gasoline. The two categories have risen 42% and 60%, respectively, over the past year.
• Shelter costs, which make up ⅓ of the entire CPI, increased by 0.6% last month and were up 5.6% annually. Rental costs saw their largest monthly increase since 1986 (+0.8%).
• Medical costs rose 0.7% in June, driven by the largest monthly increase in dental prices on record going back to 1995 (+1.9%).

🧐 A couple bright spots (if you squint really hard): Airline fares dropped 1.8% in June, though they’re still up more than 34% on an annual basis. Similarly, prices for meat, poultry, fish, and eggs fell 0.4% for the month but are still nearly 12% higher than last year.

👀 Looking ahead… The Fed is expected to raise interest rates by 0.75%–1.0% after its next two-day policy meeting, which starts July 27.

+Blast from the past: Take a look at our most recent 360° view on inflation.