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President overseas as US government says prices rose 9.1% in June compared to same month last year – follow all the latest news.
Americans looking for relief from the country’s inflation spike did not find it in June, the latest data from the Labor Department confirmed.
The consumer price index rose 9.1 percent last month compared to June 2021, its biggest 12-month increase since the same period in November 1981. It even accelerated compared to May, rising 1.3 percent compared to that month’s one percent increase.
Dig deeper into the numbers and you’ll see a story of frustration and financial pain for people across the country. Grocery prices were up one percent compared to May and 10.4 percent over the prior 12 months. Gasoline prices have increased 59.9 percent over the past 12 months and 11.2 percent in June alone.
Washington’s inflation fighter, the Federal Reserve, may respond to this report with another big interest rate increase later in July to cut into the demand drivers of inflation, as they did at their meeting last month. Biden has already seen inflation wreck his approval rating, but can hope that if Saudi Arabia agrees to bring more oil onto the market, the price of gasoline, an important contributor to inflation, will decline. Meanwhile, there’s evidence the gas price surge is already receding:
Biden begins tough Middle East trip with US inflation as bad as ever
Good morning, US politics reader. President Joe Biden has just landed in Israel for the first visit to the Middle East of his presidency, but even there, he won’t be able to escape the troubling state of the US economy. Inflation soared 9.1% in June compared to the same month last year, the government reported just minutes ago, and indeed, that problem will be on the agenda during his visit – convincing Saudi Arabia to raise oil production in a bid to lower gas prices in America is considered one of the president’s priorities.
Here’s what else is happening today:
- The Senate health committee will at 10 am eastern time be hearing from health care providers impacted by last month’s supreme court ruling overturning the right to abortion nationwide.
- A new poll shows Democrats and Republicans are in a close race when it comes to which party voters would prefer controlling Congress.
- With Biden set to visit Saudi Arabia, Hanan Elatr Khashoggi, widow of murdered journalist Jamal Khashoggi, said she had met with White House advisors and called on the US president to press Riyadh’s leadership for the release of political prisoners.