Inflation just hit its highest rate since November 1981.
The Consumer Price Index climbed 9.1% in the year through June, according to new data published by the Bureau of Labor Statistics on Wednesday.
That beats what economists surveyed by Bloomberg expected to see — a year-over-year rate of 8.8% through June. June's rate also surpasses the 8.6% year-over-year rate seen in May.
The index rose 1.3% over the month in just June, according to seasonally adjusted numbers.
Core inflation — which excludes volatile energy and food prices — climbed 5.9% year-over-year through June, just under the 6.0% one-year rate seen in May. Economists surveyed by Bloomberg expected to see the one-year core inflation rate at 5.7%.
Wednesday's report showed food prices also increasing through the year, with a year-over-year rate of 10.4% in June. Energy prices also soared from the same time a year ago, with a year-over-year rate of 41.6%.
Gas prices have been falling quickly recently after reaching a record national average of $5 per gallon. That means energy prices should look better next month. Core CPI, which economists typically use to see what inflation may look like in the future and does not include energy or food, has been moderating slightly.
However, energy did contribute to the new four-decade high. BLS wrote that energy "contributed nearly half of the all items increase." Energy prices climbed 7.5% in June alone, according to seasonally adjusted numbers. Gas rose 59.9% year-over-year per unadjusted figures.
Shelter inflation is also getting worse — with a year-over-year rate of 5.6% in June after a year-over-year rate of 5.4% in May per seasonally adjusted numbers. That is, home prices and rents are not going down anytime soon.
Despite higher prices than a year ago, inflation may be near its peak, according to reporting from Insider's Ben Winck on disinflation. However, Winck notes common goods and services aren't suddenly going to become cheaper as a result of this.
