Economists across the country are sounding increasingly alarmed about what they see as the possibility of a prolonged period of inflation in the U.S. The concern comes as consumer prices rose by the most in 13 years in June.
According to the Labor Department, the consumer price index increased 0.9 percent last month, the largest gain since June 2008, after advancing 0.6 percent in May.
In the 12 months through June, the CPI jumped 5.4 percent, the largest gain since August 2008. That increase followed a 5.0 percent increase in the 12 months through May. Excluding the volatile food and energy components, the CPI accelerated 0.9 percent after increasing 0.7 percent in May.
The so-called core CPI surged 4.5 percent on a year-on-year basis, the largest increase since November 1991, after rising 3.8 percent in May.
Spurring the inflationary trend is the nearly $6 trillion in the federal governments expenditures as well as low interest rates. Economists are saying that these things, along with the year-long COVID-19 disruptions are “fueling demand, straining the supply chain, and raising prices across the economy.”
Some forecasters are expecting inflation to remain elevated through part of 2022, while others are saying it will last “years.”