Inflation in the US keeps accelerating in June

Inflation in the US keeps accelerating. Data for June shows that the headline consumer price index (CPI) grew by 5.4% y/y compared to 5% y/y in May. This is the highest level since July 2008 (5.6% y/y).  Nonetheless, the jump is smaller: 0.4 pp in June compared to 0.8 pp in May. The core CPI, which excludes the volatile food and energy prices, increased by 4.5% y/y compared to 3.8% y/y in the previous month.

Governments and central banks across many big economies are keeping an eye on inflation, which is growing at a faster rate on the back of generous stimulus. In the US, the Personal consumption expenditure (PCE) price index, which is Fed's preferred gauge for tracking price growth, will be updated with the June data towards the end of the current month.

Further data and analysis on the US economy are available on the CEIC US Economy in a Snapshot – Q2 2021 report.