Inflation rose more than expected in June by 9.1%. That acceleration was the fastest pace for inflation since December 1981—more than 40 years. Data indicates that much of the rise came from gas prices, which rose 11.2% on the month. On average, gas costs nearly 60% more than it did one year ago. According to Bloomberg, economists were expecting June’s reading to show only an 8.8% increase.
Fox Business/Megan Henney
Inflation surges 9.1% in June, accelerating more than expected to new 40-year high
Inflation accelerated more than expected to a new four-decade high in June as the price of everyday necessities remains painfully high, exacerbating a financial strain for millions of Americans and worsening a political crisis for President Biden.
The Labor Department said Wednesday that the consumer price index, a broad measure of the price for everyday goods, including gasoline, groceries and rents, rose 9.1% in June from a year ago. Prices jumped 1.3% in the one-month period from May. Those figures were both far higher than the 8.8% headline figure and 1% monthly gain forecast by Refinitiv economists.
It marks the fastest pace of Inflation since December 1981.
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Kitco News/Anna Golubova
Gold’s year-end target is $2,050 and here’s why 17% price surge still possible – Wells Fargo
The strong U.S. dollar has been hurting gold’s price, dragging the precious metal down to 8.5-month lows as it steals its safe-haven appeal. But this is not a game-changer for gold, which can still end the year above $2,000 an ounce, according to Wells Fargo.
The U.S. dollar index rose to another 20-year high Tuesday, while the U.S. 10-year Treasury yield was at 2.921%. August gold futures were flat on the day, last trading at $1,731.60 an ounce after dropping below $1,725 overnight.
“The U.S. dollar has risen 12% since the start of the year. Almost half of that gain has come in the last month. Such big moves are quite rare, but when they do happen, commodity prices typically suffer. The reason is that most commodities are priced in U.S. dollars,” Wells Fargo’s real asset strategy head John LaForge said on Monday.
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Business Insider/George Glover
The euro has broken $1 for the first time in 20 years, bulldozed by an unstoppable dollar. Here are 3 other currencies to watch.
The euro has slipped below $1 for the first time since December 2002 this week — its latest milestone in a disappointing year where it has slid 12% against the greenback.
Analysis say the threat of “economic warfare” has caused the euro to plunge this week. Russia has closed its Nord Stream 1 natural gas pipeline, a major source of European fuel, for at least 10 days for seasonal maintenance.
Aggressive Federal Reserve rate hikes have also driven the euro lower against the dollar. Foreign investors are likely to buy dollars when rates rise due to more attractive bond yields.
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