US inflation surges again in June, raising risks for economy

Inflation
Gas prices are displayed at a filling station in Philadelphia, Tuesday, July 12, 2022. (AP Photo/Matt Rourke)

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) – Surging prices for gas, food and rent catapulted U.S. inflation to a new four-decade peak in June, further pressuring households and likely sealing the case for another large interest rate hike by the Federal Reserve.

Consumer prices soared 9.1% compared with a year earlier, the biggest yearly increase since 1981.

The persistent price acceleration underscores the brutal impact inflation has inflicted on Americans, with the costs of necessities, in particular, rising much faster than average incomes.

Lower-income and Black and Hispanic American have been hit especially hard. As consumers’ confidence in the economy declines, so have President Joe Biden’s approval ratings.

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