US inflation data for June came in significantly higher than economists expected – headline consumer price index (CPI) inflation rose to 5.4% year on year (y/y), while core CPI rose to 4.5% y/y – the highest reading since 1991. Many of the price increases in areas most affected by the reopening are likely to temper in the coming months – used cars, hotels and airfares, for example. But price increases in other areas raise the prospect that underlying inflationary pressures are set to linger longer than most currently expect.
To read this article, you need a subscription to Investment Officer. If you don't have a subscription yet, click on 'Subscribe' to see the various subscription options.
