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HomeEconomies & FinanceEconomies{US Consumer {Costs} Surge in June,|In June us {Customer} Prices Surge,} Inflation...

{US Consumer {Costs} Surge in June,|In June us {Customer} Prices Surge,} Inflation Climbs to 13-year High

WASHINGTON-U.S. consumer prices rose by {probably the most} in 13 years in June amid supply constraints and a continued rebound in {the expenses} of travel-related services from pandemic -depressed levels {because the} economic recovery gathered momentum.

{The buyer} price index increased 0.{month 9 percent last,} {{the biggest} gain since June 2008,|june 2008 {the biggest} gain since,} after advancing 0.6 percent {in-may}, {tuesday the Labor Department said on.}

In the 12 months through June, the CPI jumped 5.4 percent. {{That has been} {the biggest} gain since August 2008 and followed a 5.|August 2008 and followed a 5 {that has been} {the biggest} gain since.}0 percent {upsurge in} the 12 months through May. {Excluding the volatile energy and food components,} the CPI accelerated 0.9 percent after increasing 0.7 percent {in-may}.

The so-called core CPI surged 4.5 percent on a year-on-year basis, {{the biggest} increase since November 1991,|november 1991 {the biggest} increase since,} after rising 3.8 percent {in-may}. Annual inflation rates {have already been} boosted by the dropping of last spring’s weak readings from the CPI calculation. These so-called base effects are leveling off.

Economists polled by Reuters had forecast {the entire} CPI would climb 0.5 percent and the core CPI would rise 0.4 percent.

COVID-19 vaccinations, {low interest}, and nearly $6 trillion in government relief {because the} pandemic {were only available in} the {USA} in March 2020 are fueling demand, straining the supply chain, and raising prices {over the} economy.

{A worldwide} semiconductor shortage has undercut {automobile} production, pushing up prices of used cars and trucks-the major driver of inflation {lately}.

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With 160 million Americans immunized nearly,} demand for airline travel and accommodations is {picking right up|picking right on up}, {fanning price pressures also.}

Inflation is {likely to} remain elevated through {section of} 2022, {as {charges for} many travel-related services {remain} below pre-pandemic levels.|as {charges for} many travel-related services are below pre-pandemic levels still.}

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Federal Reserve Chair Jerome Powell has repeatedly stated that higher inflation {will undoubtedly be} transitory,|

Federal Reserve Chair Jerome Powell has stated that higher inflation {will undoubtedly be} transitory repeatedly,} noting {he} expected supply chains to normalize and adapt. Treasury Secretary Janet Yellen shares that view.

Minutes of the U.S. central bank’s June 15-16 policy meeting published {the other day} showed “{a considerable} majority” of officials saw inflation risks “tilted to the upside,{” and the Fed {all together} felt it {would have to be} {ready to} act if those risks materialized.|” and the Fed {since it} was felt {by way of a} whole {would have to be} {ready to} act if those risks materialized.}

The Fed slashed its benchmark overnight {interest} to near zero {this past year} and is pumping money {in to the} economy through monthly bond purchases. It has signaled {it might} tolerate higher inflation {for quite a while} to offset years {where} inflation was lodged below its 2 percent target, a flexible average.

The Fed’s preferred inflation measure, the core personal consumption expenditures price index, jumped 3.4 percent {in-may}, {{the biggest} gain since April 1992.|april 1992 {the biggest} gain since.}

By Lucia Mutikani

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