Food and energy prices surged 1.3% in June alone.
Fed accelerates 75bps giant step far beyond market forecast
The US inflation rate in June was a whopping 9.1%, higher than expected.
According to Bloomberg and CNBC on the 13th (local time), the U.S. Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 1.3% in the month of June alone, up 9.1% year-over-year. The consumer price inflation rate of 9.1% is the highest in 41 years since 1981.
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On the news, Nasdaq futures, which had moved slightly up, plunged 2.1%, while S&P 500 futures fell 1.4% and Dow Jones Industrial Average futures fell 1%.
The Bureau of Labor Statistics said the CPI rose due to high gasoline prices, food prices and housing costs.
Excluding volatile food and energy prices, the core CPI also rose 0.7% from the previous month and 5.9% from a year ago.
Earlier, economists surveyed by The Wall Street Journal and Bloomberg, respectively, expected most inflation figures for June to rise 1% from May and 8.8% for the full year.
As inflationary pressures appear not to be easing, the Fed is more likely to take the giant step of raising rates by 75 basis points at the Federal Open Market Committee (FOMC) meeting in two weeks.
By Kim Jung-ah, staff reporter [email protected]
