Inflation rose 9.1 percent in June, surpassing expectations for a new 40-year high.

Inflation rose sharply in June to a new four-decade high as the cost of daily necessities plummeted, exacerbating the financial crisis for millions of Americans and exacerbating the political crisis for President Joe Biden.

The Department of Labor said on Wednesday that consumer prices, including gasoline, grocery and rent, rose 9.1% in June a year ago. Prices have increased by 1.3% since May. Both figures were significantly higher than the 8.8% headline and 1% monthly profit forecast estimated by reference economists.

Makes a mark Very fast inflation Since December 1981.

Major prices for more flexible food and energy metrics increased by 5.9 percent compared to the previous year. Inflation rises 0.7% per month – higher than April and May – indicates that inflation will remain strong and widespread.

Analysts say that a major economic downturn is needed to slow inflation.

Inflation is so wide that inflation is unlikely to be as high as it used to be, compared to last month’s 7.5 percent increase in June, up 41.6 percent from last year. Gasoline averaged 59.9 percent more than a year ago and 11.2 percent higher than in May. The food index rose 1% in June.

Another worrying sign is that housing costs – covering one-third of the CPI – accelerated again in June, up 0.6% to the 18-year high in May. Accommodation costs have increased by 5.6% per year, the fastest since February 1991.

Rental prices rose in June, jumping 0.8% month-on-month, the highest monthly increase since April 1986. Rent increases are a development issue because high housing costs directly affect the household budget. Another factor that measures how much landlords will pay if they do not buy their home is reasonable, and jumped 0.7 percent in June.

The New York Fed reported that US inflation rose to a new 11-year high in June.

“The CPI has presented another shocking fact, and the source of inflation, which is as painful as June, is bad,” said Robert Frick, a corporate economist at the Federal Navy’s Credit Union. “While the CPI increase is driven by energy and food prices, despite rising global problems, prices continue to rise from domestic goods and services, from shelter to automobiles to clothing.”

Following the report, shares fell, but government bond yields increased.

Ticker	Safety	last one	Change	Change%
I am dying DJ	Dow Jones Average	30724.06	-257.27	-0.83%
SP500	S&P 500	3799.43	-19.37	-0.51%
I fell COMP	NASDAQ Integrated Index	11255.902465	-8.83	-0.08%

Warm inflation has put a strain on most American households, forcing them to pay for daily necessities such as food, fuel, and rent. The unbalanced burden is borne by low-income Americans, and their already established wages have a significant impact on inflation.

Although American workers have seen strong wage increases in recent months, inflation has largely worsened. Average annual earnings fell 3.6% in June.

Widespread inflation and the rapid collapse of American power have made Biden a major political liability for Biden ahead of the mid-November election, with Democrats already expected to lose their razor-sharp majority. Studies show that Americans see inflation as the biggest problem in the country – and many households blame Biden for inflation.

He blamed the greedy corporations, supply chain bottlenecks and other economic crises on Russia and the war in Ukraine. Most economists now agree that unprecedented levels of government stimulation and recovery from the epidemic have played a small part in exacerbating inflation.

In a statement issued after the report, Biden acknowledged that inflation was “unacceptable” and called it a “priority.” But the data indicated that it was “outdated”, that high gas prices were responsible for the ugly CPI reading – and that prices at the pump had since dropped.

“Today’s headline inflation reading is unacceptable, but it’s outdated,” Biden said. “Today’s data does not fully reflect the impact of a 40-day drop in fuel prices, which has reduced the price of the pump by about 40 cents since mid-June.

A worse-than-expected report will have a significant impact on the Federal Reserve. For the first time since 1994, policymakers raised benchmark interest rates by 75 points, confirming a similar increase in July.

At a time when inflation is hotter than economists expected in June, Wall Street is now likely to increase its mega-base by 100-percent in July. 38% of traders are likely to increase their price by 100-point by the end of this month, according to FedEx, a business monitoring group.

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The federation is still in danger of falling into the trap of slowing down consumer demand and pushing inflation to its 2% target. The cost of walking tends to be too high for consumers and business lenders, forcing employers to cut costs and slowing down the economy.

RSM chief economist Joe Brussels said: “Inflation continues to rise, indicating the need for strong and sustained policy action from the Federal Reserve. “We estimate that there will be a 45% recession in the next 12 months.”