U.S. Inflation Surged 0.6% In June, Powered By Higher Gas Prices

Summary

  • Both all-items inflation and core inflation rose faster in June than the consensus estimates.
  • Will any of this alter the Federal Reserve’s commitment to ultra-low interest rates? No.
  • The June inflation report offers a glimmer of hope for a small increase in the Social Security COLA in 2021.

Even though financial markets have been signaling deflationary doom in recent months, U.S. inflation rose a brisk 0.6% in June, primarily caused by a sharp rise in gasoline prices.

Read my full analysis on SeekingAlpha.com

All items versus core inflation

About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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