Today’s update on consumer prices for June is one more bit of bad news on inflation. But maybe, just maybe, the inflationary momentum is about to break for a while.
Before we dive into what may, or may not happen, let’s review the latest numbers. Consumer prices surged by 1.1% last month, the Bureau of Labor Statistics reports. That’s the highest monthly gain since 1981. On an annual basis, CPI rose by 4.9% through last month–the highest since 1991.
There’s no doubt what’s behind the price hikes: energy prices jumped 6.6% last month, the government reports. The surge in energy costs spilled over into transportation, which climbed 3.8% last month. Food isn’t lying low either, although its 0.8% advance in June looks modest by comparison with energy and transportation.