Inflation hits another 40-year high. What does that mean for shoppers and the next Fed rate hike?

Inflation hits another 40-year high. What does that mean for shoppers and the next Fed rate hike?

Inflation jumped again in June on a persistent climb in gas, food and rent costs

notching another 40-year high and likely solidifying the Federal Reserve’s plans for another big rate hike this month

Prices increased 9.1% from a year earlier, up from an annual rate of 8.6% the prior month and the largest gain since November 1981

the Labor Department's Consumer Price Index showed Wednesday

 Economists surveyed by Bloomberg had estimated inflation would rise to 8.8%.

On a monthly basis, consumer prices increased 1.3%, the largest such leap since 2005, compared with a 1% rise in May.

"Ouch," Ian Shepherdson, chief economist of Pantheon Macroeconomics, wrote in a research note of the latest surge in prices.

Amid signs that inflation is poised to gradually ease, he, along with other economists

noted June likely marked its peak, though a similar pronouncement in the spring proved premature.

The report bolsters the Federal Reserve's plans to raise its key interest rate by a hefty three-quarters of a percentage

point for a second straight month as part of an aggressive campaign to curtail inflation

The development disappointed already dour investors. After the latest figures were released

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