US inflation has breached 9 percent for the first time in more than 40 years
It’s leading to fears of a recession in the world’s biggest economy and speculation the Federal Reserve will lift interest rates even further.
President Joe Biden is downplaying the huge increase in consumer prices as “out of date” because of the sharp drop in petrol prices in the US since June.
It comes just four months from the crucial midterm elections.
The inflation shock sent stocks lower on Wall Street, intensifying debate on the next steps by the Federal Reserve to tame prices.
US inflation surged to a fresh peak of 9.1 percent in June.
Beyond the hit to consumption from high prices, analysts worry the report will prompt the Fed to adopt even tougher measures to tighten monetary policy, such as a full percentage point interest rate increase at the July 27 meeting
