US Consumer Prices Rise 9.1% in June... Worst Inflation Continues

[Asia Economy Reporter Kwak Min-jae] The US Consumer Price Index (CPI) for June rose by 9.1%. This surpasses the 8.6% increase recorded in May, the worst in 41 years since 1981, and also exceeds the market forecast of 8.8%.

According to the US Department of Labor on the 13th (local time), the US CPI for June increased by 9.1% compared to the same month last year. This figure exceeds the market forecast (8.8%) by 0.3 percentage points. Compared to the previous month, it rose by 1.3%, also surpassing the market forecast (1.1%) by 0.2 percentage points.

The initial market forecast for the US CPI increase this month was 8.8%. This reflected expectations that US inflation might peak and begin to decline as the rise in international oil prices eased this month. However, some market experts, including investment banks UBS and Deutsche Bank, predicted that the CPI increase could exceed 9%.

The US Federal Reserve (Fed), having not confirmed the peak of inflation, is expected to continue its high-intensity tightening measures. The market has taken for granted that at the July Federal Open Market Committee (FOMC) regular meeting scheduled for the 26th-27th, the Fed will raise interest rates by 0.75 percentage points in a 'giant step.'