US Inflation Climbs to Highest Rate since 2008

The US inflation rate rose at the fastest pace since 2008 in June, exceeding all expectations.

The consumer price index rose 5.4% on an annual basis, the highest rate since August 2008, higher than economists' expectations for a 4.9% year-over-year increase.

Moreover, the index increased 0.9% last month, the largest gain since June 2008, after advancing 0.6% in May.

“The fact that the recent run-up in inflation has been dominated by a few categories should give the Fed leadership continued confidence in their view that it is mostly a transitory increase, a view which the market apparently shares,” Michael Feroli, an economist at JPMorgan Chase said.

"Some inflation drivers, however, could remain beyond next year such as higher rents and rising wages amid labor shortages," he continued.