. That was far higher than Bloomberg's consensus economic forecasts of 0.5%, and according to BLS, was the largest one-month jump in prices since June 2008.
The price index was 5.4% higher than it was in June 2020, marking another record high for recent years:: Consumers are able to buy less stuff if goods and services are too expensive, and savers and investors can see their real returns plummet if the interest rates they receive can't keep up with rising prices.
But the current round of price increases may be more benign, and could very well abate within the next several months.Much of the inflation seen in recent months comes from the collision between supply chains still recovering from the disruption of the pandemic and a surge of pent-up demand as vaccination rates increase and lockdowns and health restrictions lift.
Powell said,"the incoming inflation data have been higher than expected. But they're actually still consistent with what we've been talking about, that the very high inflation readings are coming from a small group of goods and services that are directly tied to the reopening of the economy. It's new cars, used cars, rental cars, hotel rooms, airplane tickets — things we understand.
Fantasia
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