(CBS News) — Inflation hit a fresh 40-year record in June, with consumer prices increasing 9.1% over the last 12 months, the Labor Department said Wednesday.
It’s the fastest increase in prices since November 1981, and above what economists had expected. The increases were broad-based: Rent, new and used vehicles, car insurance, and medical care all rose in June, the government report said.READ MORE: College Park breaks ground on Gateway Pedestrian Bridge and Trail
Core inflation, which strips out volatile food and energy prices, rose 5.9% over the last 12 months, slowing its pace from May.READ MORE: Authorities Have Identified The Suspect Who Attacked Author Salman Rushdie
“Price pressures have broadened to virtually every major line item within the inflation categories,” Gargi Chaudhuri, Head of iShares Investment Strategy Americas at BlackRock, said in a research note. “Core inflation is still high, but the drastic difference between headline and core shows how much the recent move in prices has been driven by food and energy price volatility resulting from supply shortages,” Chaudhuri added.MORE NEWS: Anne Heche's Son Mourns His Mother