US Consumer Prices On The Rise

US Consumer Prices saw their largest increase in 13 years in the month of June of .9%. This places the year over year outlook to 5.4% the sharpest 12-month inflation spike since 2008. This signaling a rebound in spending despite widespread shortages on many goods. Both the Federal Reserve and White House have expressed their belief that current inflation levels are temporary waves and as supply chain bottlenecks are resolved and the economy returns to normal that these price spikes seen on items such as used cars, hotel rooms, and airline tickets will fade along with inflation. This sentiment is backed by many economists and even big Wall Street investors. Last month alone, average used car prices soared 10.5% – the largest monthly increase since record-keeping began in January of 1953. The fed has indicated they prefer inflation to average 2% over time but many economists foresee us remaining well above 3% due to having fallen below that 2% mark for some time.