1/ Inflation climbed to 9.1% in June compared with a year earlier – the biggest 12-month increase in 40 years. On a monthly basis, the consumer price index jumped 1.3% from May to June, after prices had jumped 1% from April to May. While average wages in June were 5.1% higher than a year ago, energy prices rose by 41.6%, groceries were up 12.2%, and shelter costs were up 5.6% over the year. Further, average inflation-adjusted incomes fell 1% for the month and were down 3.6% from June 2021 to June 2022. The Federal Reserve’s beige book, a summary of the commentary on current economic conditions, reported that businesses “noted concerns over an increased risk of a recession” and that discretionary spending is showing signs of slowing due to higher gasoline and food prices. The Federal Reserve raised interest rates by 0.75 percentage points last month – the largest increase since 1994. Accelerated inflation, however, may require the Fed to consider a historic one percentage point rate hike later this month to slow the economy and restrain inflation. “Everything is in play,” Federal Reserve Bank of Atlanta President Raphael Bostic said. (Politico / NPR / NBC News / Wall Street Journal / CNBC / Bloomberg / New York Times / Washington Post / CNN / Associated Press)
This is a companion discussion topic for the original entry at https://whatthefuckjusthappenedtoday.com/2022/07/13/day-540/