Inflation hit a new peak in June.
U.S. consumer prices soared 9.1% in a year, the U.S. Bureau of Labor Statistics reported Wednesday, the fastest pace since 1981.
Price spikes for gasoline, housing and food drove last month’s hot inflation.
Food costs increased 10.4% in a year with the food at home index, which measures grocery store food prices, hitting 12.2%, the highest point in 43 years. Butter jumped 26%, fruits and vegetables climbed 8.1% and cereals are up 13.8% from June to June.
From May to June, however, the cost of meat, poultry fish and eggs started to fall by 0.4%.
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Although Americans are starting to see some relief at the gas pump, with the national average 32 cents lower than it was a month ago, prices remained high throughout June.
Gasoline costs went up a sharp 59.9% in a year, the consumer price index shows. In June, gas prices went up 11.2% after increasing 4.1% in May.
Despite high demand during the July 4 holiday, gas prices have fallen in recent weeks to an average of $4.67 a gallon, according to AAA.
“Usually, more people buying gas would lead to higher pump prices,” said AAA spokesperson Andrew Gross in a statement. “But the price for oil, the main ingredient in gasoline, has fallen and is hovering around $100 a barrel. Less expensive oil usually means less expensive gas.”
High price increases were also reported for household furniture, new and used vehicles and airline tickets.
Surging costs continue to eat away at wage increases which have dropped 3.6% in a year.
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Nearly half of Americans say inflation or gas prices are their biggest concern right now, a Monmouth poll found earlier this month. Roughly 4 in 10 said they are struggling to remain where they are financially with those earning under $50,000 feeling the biggest stings.
“Economic concerns tend to rise to the top of the list of family concerns, as you might expect, but the singular impact of inflation is really hitting home right now. And most Americans are blaming Washington for their current pain,” said Patrick Murray, director of the independent Monmouth University Polling Institute.
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To cool the hot inflation, the Federal Reserve ticked up interest rates twice this year.
Despite the recent monetary policy, the White House expected another month of hot inflation. However, Press Secretary Karine Jean-Pierre said the June data is “already out of date” because gas prices are falling.
“I would also note that even though gas prices shot up quickly when oil prices rose, they have not come down as quickly as oil has. We continue to call on oil and gas companies to pass on their lower cost to consumers. American families should not be the first to pay and the last to benefit,” she said during a June 12 press briefing.
The Fed is reportedly eyeing another interest rate hike later this month to rein in surging prices.
The aggressive monetary policy has some economists concerned the U.S. could slip into a recession with layoffs hitting some sectors, like tech and finance, vulnerable to interest rates .
But Fed Chairman Jerome Powell recently told the Wall Street Journal he is more concerned about price stability than the risk of recession.
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