The consumer price index increased 5.4% from a year ago, the largest jump since August 2008, just before the worst of the financial crisis. Economists surveyed by Dow Jones had been expecting a 5% gain.
Stripping out volatile food and energy prices, the core CPI rose 4.5%, the sharpest move for that measure since September 1991 and well above the estimate of 3.8%. On a monthly basis, headline and core prices both rose 0.9% against 0.5% estimates.
Just four days after CNBC ran a widely mocked op-ed arguing that rising wages are a silver lining of inflation, they now have to report that:
A separate report from the department’s Bureau of Labor Statistics noted that the big monthly hike in consumer prices translated into negative real wages for workers. Real average hourly earnings fell 0.5% for the month, as a 0.3% increase in average hourly earnings was more than negated by the CPI increase.
Due to rising inflation, the Federal Reserve has moved up their timeline for increasing interest rates to as soon as 2023, after previously saying they saw no increases until at least 2024.