Excluding the volatile food and energy components, the so-called core CPI rose 4.5% from June 2020, the largest advance since November 1991. That dynamic is contributing to higher costs, which often feed through to consumer prices. Sustained constraints in the production pipeline, along with a pickup in wages, raise the risk of an acceleration in consumer inflation. Wage growth rose steadily through the second quarter, but higher consumer prices are taking a toll. Consumers are anticipating higher prices in the near-term.

Source: Mint July 13, 2021 15:11 UTC