Jul 13, 2022, 8:13 PM

US inflation hits 9.1%, its highest rate in 40 years

US inflation hits 9.1%, its highest rate in 40 years

President Joe Biden criticised the latest data showing US inflation had last month reached a 40-year high and said the figure failed to account for the “nearly 30 days of decreases in gas prices”.

Consumer prices rose by 9.1 percent year-on-year, the largest gain since 1981, data from the US Labour Department indicated on Wednesday. Prices rose by 1.3 percent from May to June, after they had risen by 1 percent from April to May, the Emiratee National news website said.  

The core consumer price index, which strips out the more volatile food and energy components, advanced 0.7 percent from the previous month and 5.9 percent from a year ago, above forecasts.

The price increases reflect the growing effect of inflation on families as costs for necessities such as fuel and food rise faster than average incomes. Mr Biden said Wednesday's report did not reflect the savings Americans have made on declining fuel and wheat costs.

The inflation figures will mean Fed officials continue their aggressive interest-rate policy, and add further pressure on Mr Biden's administration to control prices before the midterm elections this year. The continuing surge in inflation has sparked a slump in the president's approval ratings.

President Biden has urged Congress to pass legislation that would lower costs on prescription drugs, utilities and other necessities, and accused Republicans of proposing to raise taxes.

Forty percent of adults believe tackling inflation should be a top priority this year, an AP-NORC poll last month found, up from 14 percent in December.

MNA

News ID 189057

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