WASHINGTON (AP) — An inflation gauge that is closely tracked by the Federal Reserve jumped 6.8% in June from a year ago, the biggest increase in four decades, and leaving Americans with no relief from surging costs.
Friday’s government figures underscored the persistence of the inflation that is eroding Americans’ purchasing power, dimming their confidence in the economy and threatening Democrats in Congress in the run-up to the November midterm elections.
On a month-to-month basis, prices rose 1% from May to June, faster than the 0.6% rise from April to May and the biggest such jump since 2005.
A separate government report Friday reinforced the fact that the economy remains gripped by inflation pressures. A measure of employees’ wages, excluding government workers, jumped 1.6% in the April-June quarter, matching a record high reached last fall. Higher wages can fuel inflation if companies pass their higher labor costs on to their customers, as they typically do.
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#BREAKING: A key US inflation gauge reaches 6.8 percent as prices keep surging https://t.co/cR6qgqbKPw pic.twitter.com/NQuURou8Qh
— The Hill (@thehill) July 29, 2022
Inflation hits record 8.9 percent in euro area, but economy grows https://t.co/jCsQyuEJtj pic.twitter.com/mNLpuYY6lI
— The Hill (@thehill) July 29, 2022
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