U.S. Consumer Price Index Sees Largest Jump Since 2008

The consumer price index rose 0.9% from May to June and 5.4% from June 2020, the sharpest annual increase in 13 years.

Prices for U.S. consumers jumped in June by the most in 13 years, signaling a rebound in spending has run up against widespread supply shortages that have escalated the costs of many goods and services. Tuesday's report from the Labor Department showed that consumer prices in June rose 0.9% from May and 5.4% over the past year — the sharpest 12-month inflation spike since August 2008. Excluding oil and gas prices, so-called core inflation rose 4.5% in the past year, the largest increase since November 1991. The pickup in inflation, which coincided with the economy’s recovery from the pandemic, will likely intensify a debate at the Federal Reserve and between the Biden administration and congressional Republicans about how persistent the accelerating price increases will be.