Inflation hits 40-year high in United States
BOSTON - The number was not surprising, but shocking, nonetheless.
Inflation hit a 40-year high last month when it clocked in at 9.1 percent year-to-year.
"We didn't need to see the official statistics to know what the problem is," said Peter Ireland.
Ireland is a professor of economics at Boston College and said those in his line of work expected the consumer index report to show increased inflation, but not this severe.
"The shock in today's report really comes from the fact that inflation actually continued to move higher," said Ireland.
The Consumer Price Index showed gasoline to be a leading cause of inflation across the board with prices up 60 percent compared to this time last year.
Electricity prices increased by 14 percent, and groceries went up by 12 percent.
Rent also is credited as a top contributor in June's report. Rates increased an average of 5.8 percent. It's the highest increase since 1986.
In a sign that things could be improving, gas prices have started to drop. Although, Ireland said, we likely won't see the results of that until next month's report.
In another bit of good news, Dr. Robert Murphy of Boston College said sales could be coming to stores near you.
Remember all those cargo ships waiting to port with global goods? Murphy said they are now on shelves and many retailers are overflowing. They need to get rid of the product, and that could mean sales.
"We are going to begin now, I think, a period where retailers are pairing their inventory," said Dr. Robert Murphy. "They are going to be discounting pretty sharply and those discounts will go into the price index and into the measure of inflation."
