US inflation keeps rising in June, core CPI worse than expected
Inflation in the US was worse than forecasted in June 2022, going above 9% for the first time since November 1981. According to data from the US Bureau of Labor Statistics, the consumer price index (CPI) increased by 9.1% y/y up 0.5pp from the 8.6% rise registered in the previous month and beating the 8.8% median forecast. On a monthly basis, the rate of CPI accelerated to 1.3% from 1% in May, on the back of higher prices for food, fuel, and housing. Core inflation, which excludes food and energy prices, decelerated to 5.9% from 6% in May, the third consecutive easing although still worse than the median forecast.
Like previous months, inflation was driven mainly by energy prices which rose by 41.6% y/y. Food and beverages inflation stood at 10% with food being 10.5% more expensive compared to June 2021. Among core inflation components, transportation prices were up 19.6% y/y, housing inflation jumped by 7.3% and apparel by 5.2%.
The June CPI numbers reveal that the Federal Reserve is still ineffective in tackling inflation despite hiking the policy rate by 150 to 175 basis points since the beginning of the year. Inflationary pressures are fuelled by global supply chain blockages, the war in Ukraine and the COVID lockdowns in China.
Further data and analysis on the US economy are available on the CEIC US Economy in a Snapshot – Q2 2022 Report.