According to federal data released Wednesday, the price of goods increased 1.3 percent in June, causing inflation to reach a new 40-year high of 9.1 percent for the 12-month period ending in June.
The new figures show the highest 12-month inflation rate since December 1981.
The growth in inflation was fueled by a massive increase in gas and energy prices. The price of energy increased 7.5 percent in June alone and went up 41.6 percent for the 12 months ending in June.
President Joe Biden said a recent decline in gas prices made the data "out of date."
"While today’s headline inflation reading is unacceptably high, it is also out-of-date," he said. "Energy alone comprised nearly half of the monthly increase in inflation. Today’s data does not reflect the full impact of nearly 30 days of decreases in gas prices, that have reduced the price at the pump by about 40 cents since mid-June. Those savings are providing important breathing room for American families. And, other commodities like wheat have fallen sharply since this report."
Food prices increased 1% in June and were up 10.4 percent for the 12 months ending last month. Food at the grocery store continues to increase at a faster rate than food away from home. The cost of eating at home has gone up 12.2 percent over the last year, compared to 7.7 percent for food prepared away from home.
When removing gas and food prices from figures, the price of goods went up 5.9 percent in June compared to 2021.
The data shows that wages are failing to keep up with inflation. The average nonfarm hourly rate increased by 10 cents in June, or .3 percent, to $32.08. In the last 12 months, the BLS reports that the average hourly rate for nonfarm work rose 5.1 percent.