U.S. inflation soared to its highest level in nearly 41 years last month with consumer prices 9.1% higher than they were in June of 2021, according to the latest federal data.
The Consumer Price Index’s annual reading for the 12-month period ending in June was even higher than May’s annual rate of 8.6%, according to the U.S. Bureau of Labor Statistics.
Viewed on a month-to-month basis, the 1.3% increase in consumer prices in June showed inflation accelerating from the previous 1% monthly increase in May. Price increases were broad-based with gasoline, shelter and food being the largest contributor.
Gasoline prices soared 11.2% over a one-month period in June following a 4.1% increase for the month of May. Over the past 12 months gasoline prices have risen 59.9%.
The broader energy index, which includes the cost of electricity and natural gas, rose 7.3% over a one-month period in June after a 3.9% increase in May. The index rose 41.6% over the 12-month period ending in June – the largest 12-month increase since April 1980.
On an annual basis, the cost of fuel oil is up 98.5%, electricity is up 13.7%, and natural gas is up 38.4% from June of 2021.
Food prices rose 1% last month and are 10.4% higher than they were in June of 2021. The shelter index increased 0.6% on a month-to-month basis and is 5.6% higher than a year ago. The rent index rose 0.8% percent over the month, the largest monthly increase since April 1986.
New vehicle prices were 0.7% higher in June than in May and are up 11.4% from a year ago. The index for used cars and trucks rose 1.6% on a monthly basis in June, the sixth consecutive monthly increase. Used car and truck prices are up 7.1% over the 12-month period ending in June.
The 9.1% all-items increase for the 12 months ending in June is the largest 12-month increase since the one-year period ending in November 1981, the BLS said.