Inflation for food at home climbed to 12.2% year over year in June, the Bureau of Labor Statistics reported, prompting speculation around the Federal Reserve’s plans this month for another big rate hike.
In the overall U.S. economy, inflation, which climbed in May to 8.6%, rose even higher for June to 9.1%, marking a new 40-year high.
The Bureau of Labor Statistics' (BLS) June Consumer Price Index (CPI) reflected that food and fuel were top contributors to this month's inflation surge. Grocery prices rose 1% and 12.2% over the past 12 months, BLS reported.
Month to month, grocery prices were up 1% over May levels, the sixth consecutive month that saw a 1% or greater increase. The BLS also reported gasoline prices increased 11.2% and 59.9% annually.
Grocery items seeing notably high inflation in June include:
- Butter and margarine, 26.3%
- Chicken, 18.6%
- Milk, 16.4%
- Lunch meats, 18%
- Baby food, 14%
- Rice, pasta and cornmeal, 14.2%
Experts worry rising prices could also lead consumers to limit their overall spending, and there is plenty of evidence to suggest consumer distress over soaring inflation. The Consumer Confidence Index as measured by the University of Michigan hit an all-time low in June.