- Consumer prices surged 9.1% in June from a year ago, and economists think this isn’t even the peak.
- This likely means at least a 75-basis-point rate hike, maybe even a hundred basis points, ahead.
- Some economists worry a recession, stock and bond market declines, consumer debt woes will follow.
Consumer inflation continues to rise at a torrid pace, significantly raising the odds the Federal Reserve will further supersize its interest rate hike at its next policy meeting and the economy will fall into recession sooner rather than later.
Consumer prices rose 9.1% in June from a year ago, well above economists’ mean forecast of 8.8% and at the fastest pace since November 1981. Even without the surge in energy and food prices, the so-called core rate rose 5.9%, also above estimates for 5.7%.