The Clap
U.S. inflation jumped again in June as the consumer price index recorded a 9.1% YoY increase.
The Deets
June inflation came in higher than Wall Street estimates for the fourth month in a row.
Even core inflation, which doesn’t take into account food & energy prices due to their volatility, also exceeded estimates.
Why this Matters
The White House has already stated that June’s inflation figure would be “highly elevated”, due to recent decreases in gas prices.
Remember that inflation figures are measures of past prices, & not current ones.
The Fed
The Federal Reserve hinted at a 0.75% interest rate rise this month way before June’s inflation rate came out.
But now that it’s out & higher than expected, whispers of a 1% interest rate hike are picking up steam.
