Inflation hits 40-year high in June, energy prices a culprit

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Inflation hits 40-year high in June, energy prices a culprit
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The price of energy increased 7.5% in June alone, and went up 41.6% for the 12-month period ending in June.

According to federal data released Wednesday, the price of goods increased 1.3% in June, causing inflation to reach a new 40-year high of 9.1% for the 12-month period ending in June.The growth in inflation was fueled by a massive increase in gas and energy prices. The price of energy increased 7.5% in June alone and went up 41.6% for the 12 months ending in June.

Food prices increased 1% in June and were up 10.4% for the 12 months ending last month. Food at the grocery store continues to increase at a faster rate than food away from home. The cost of eating at home has gone up 12.2% over the last year, compared to 7.7% for food prepared away from home. When removing gas and food prices from figures, the price of goods went up 5.9% in June compared to 2021.

The data shows that wages are failing to keep up with inflation. The average nonfarm hourly rate increased by 10 cents in June, or .3%, to $32.08. In the last 12 months, the BLS reports that the average hourly rate for nonfarm work rose 5.1%.

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