US consumer prices rose 5.4% in June from the same month a year ago, higher than a projected 4.9%, the US Labor Department said Tuesday.
The Consumer Price Index (CPI), which measures changes in the price of goods and services from a consumer perspective, marked its largest 12-month increase since August 2008.
In June, the CPI rose 0.9% from the same month a year ago, after rising 0.6% in May. “This was the largest 1-month change since June 2008 when the index rose 1%,” it said.
“The energy index increased 1.5% in June, with the gasoline index rising 2.5% over the month,” it added.
The energy index rose 24.5% in the last 12-months and the food index increased 2.4%, according to the Labor Department.
Core consumer prices, which exclude food and energy, rose 0.9% in June from the previous month was up 4.5% year-over-year — the largest 12-month increase since the period ending November 1991.
The grim CPI data is being closely watched by the Federal Reserve for inflation for an indication of when and how much it would raise interest rates.
The central bank indicated on June 16 that it could make two rate hikes by 0.25% each in 2023 to tame the rising inflation.
Fed Chair Jerome Powell has repeatedly said the bank will allow inflation to climb above the target of 2% for some time until full economic recovery.
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