US inflation hits 40-year-high at 9.1% in June

Washington: Fueled by increase in the prices of oil, shelter and food, the inflation rate in the US rose to 9.1 per cent in June.

The inflation rate rise was the largest 12-month increase since the period ending November 1981.

The US Bureau of Labor Statistics said: “Over the last 12 months, the all items index increased 9.1 percent before seasonal adjustment.”

“The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.3 per cent in June on a seasonally adjusted basis after rising 1.0 per cent in May,” it said.

According to the Bureau, the increase was broad-based, with the indexes for gasoline, shelter, and food being the largest contributors.

The energy index rose 7.5 per cent over the month and contributed nearly half of the all items increase, with the gasoline index rising 11.2 per cent and the other major component indexes also rising.

The food index rose 1.0 percent in June, as did the food at home index.

The all items – less food and energy – index rose 5.9 per cent over the last 12 months. The energy index rose 41.6 percent over the last year, the largest 12-month increase since the period ending April 1980.

The food index increased 10.4 per cent for the 12-months ending June, the largest 12-month increase since the period ending February 1981.


Indian rupee weakens against dollar

Chennai: The Indian rupee slightly weakened against the US dollar on Wednesday, falling below Rs 79.65.

The rupee movement against the dollar will be triggered by the inflation numbers of the US which are expected to be out later on Wednesday.

“Rupee traded with minor losses falling below 79.65 as the dollar index traded positive above $108 rupee range can be seen between 79.25-79.75,” said Jateen Trivedi, Vice President, Research Analyst, LKP Securities.

Trivedi said the crude price falling below $100 can be a positive trigger for rupee, but inflation numbers in the evening from the US shall give a major trigger to rupee movement against the dollar.

Image courtesy of (Daily Sabah)

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