Inflation hits another 40-year high. What does that mean for shoppers and the next Fed rate hike?
Prices increased 9.1% from a year earlier, up from an annual rate of 8.6% the prior month and the largest gain since November 1981
Economists surveyed by Bloomberg had estimated inflation would rise to 8.8%.
On a monthly basis, consumer prices increased 1.3%, the largest such leap since 2005, compared with a 1% rise in May.
"Ouch," Ian Shepherdson, chief economist of Pantheon Macroeconomics, wrote in a research note of the latest surge in prices.
The report bolsters the Federal Reserve's plans to raise its key interest rate by a hefty three-quarters of a percentage
The development disappointed already dour investors. After the latest figures were released, the Dow Jones Industrial Average sank by more than 300 points.
The S&P 500 fell by 37 points, roughly 1%.
yields on 10-year notes popped. In midmorning trading, they hovered at 3.03%.
une’s surge again was led by gasoline prices, which increased 11.2% from the prior month and 59.9% annually.