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| Photo Credit: AP. |
U.S. inflation figures rose to about 11.3% as measured by producer wholesale prices for the month of June 2022, according to a report Thursday from the Bureau of Labor Statistics.
Thursday’s
report is coming a day after headline inflation measured by the consumer price
index rose to 9.1% for the 12 months ending in June, the highest level since
1981, Washington Examiner reports.
The Federal Reserve is struggling to control skyrocketing inflation by further raising interest rates after raising rates three times since the beginning of the year.
Prices of
goods are out of control in the troubled economy as the Biden administration
runs out of idea to deal with the situation.
The Producer
Price Index (PPI) determines the wholesale prices of goods.
In June, the
central bank hiked its interest rate target by three-fourths of a percentage
point for the first time since 1994 as against the quarter of a percentage
point, or 25 basis points that is typical of the Fed.
The
Washington Examiner reported that the Federal Reserve would meet later this
month and will likely raise its rate target by another 75 basis points or even
more.
The rate hike by the Fed may slide the world’s largest economy into recession.
The U.S.
economy contracted by 1.6% annual rate in the first quarter of this year.
The National
Bureau of Economic Research defines a recession as “a significant decline in
economic activity that is spread across the economy and that lasts more than a
few months,” the outlet reported.