Economists initially predicted that inflation would be at 4.9%.
The rate rose again last month, contrary to the Federal Reserve notion that recent high levels of inflation are “temporary.”
In June, the consumer price index rose 5.4% year-on-year, the fastest rate since August 2008, well above 5%.
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Economists initially predicted that inflation would be at 4.9%.
It’s too early to tell if the recent rise in US inflation is temporary or structural, according to Daniel Casali, chief investment strategist at Tilney Smith & Williamson. However, core CPI inflation (former food and energy) reaches its highest level in 30 years, increasing the risk that inflation could be structurally high in the future.
“By breaking down the data, just three categories (shelter, used car prices and transport services) accounted for 76% of the annual increase in core CPI in June. A rapid rise in used cars and transport services (e.g. airfares) Price rises will need to be resolved as supply issues are driven by supply issues and power recovers after the economy reopens,” Casali said.
“However, from 2.2% in May, the shelter CPI components (including rents) accelerated to 2.6% year-on-year. Acceleration of shelter prices accounts for 42% of the core CPI inflation basket, and moves higher from here. Considering what you can do, it’s a concern: it sees the opening of the economy as an opportunity for landlords to raise rental prices and as insurance premiums for a suspension of potential future evictions by the government in the event of a rise in community incident. Because it can include
For a while, the Federal Reserve has described prices as “temporary” and has sent a message that inflation will resolve as it becomes easier to close and the supply balance will be balanced as demand is balanced. Masu.
However, many investors are concerned that inflation could be here beyond the Fed’s expectations.
