Inflation Soars to 13-Year High in June. Surge Seen in Used Cars and Trucks

Source: US Bureau of Labor Statistics

Inflation for urban consumers posted the fastest monthly growth in 13 years in June, driven mainly by the spike in prices of used cars and trucks. VCR slips 0.29%.

• The Consumer Price Index for All Urban Consumers grew 0.9% from the previous month, marking the biggest monthly change since June 2008’s 1.0%. Yearly inflation stood at 5.4%.
• Food prices climbed 0.8% due to higher prices of meats, poultry, fish, and eggs.
• The energy index rose by 1.5% after natural gas continued to increase while electricity prices posted a slight drop.
• Core inflation for urban consumers likewise rose to 0.9%, as most items recorded upward price movements during the month.
• Prices of used cars and trucks climbed for the third straight month, up 10.5% in June. This is the highest on record since 1953.
• Increases were also seen in new vehicles, motor vehicle insurance, airline fares, apparel, recreation, education, and hospital services.
• Declines were reported in household furnishing and operations, medical care, and prescription drugs.
• Communication prices were unchanged from the previous month.