Inflation spiked 5.4% for the month of June – the largest increase in almost 13 years, according to the latest report from the U.S. Department of Labor.

Prices of vehicles, food, and energy increased significantly for the month as the pandemic continues to loom despite signs that an economic recovery is under way.

According to the Labor Department, the Consumer Price Index (CPI) experienced the largest increase since August 2008. The index has been trending upwards since January, the agency said.

The report indicated that consumer prices rose 0.9% in June from the previous month and 5.4% over the past year.

The reports showed a sharp rise in the price of cars and trucks, increasing 10.5% in June, while food prices were up marginally 0.8% for the month and 2.4% over the past year. Energy prices also rose 1.5% in June, with the gasoline index up 2.5% over the month and up 45.1% over the past 12 months.

The Federal Reserve has warned that increasing prices are due to supply shortages and short-term disruptions in the supply chain, which are temporary as the economy rapidly recovers, the Associated Press reported.

Products such as semiconductor chips and paper products have been in high demand, causing components shortages and higher production costs. Supply disruptions and logical issues have also played significant roles.

The Fed is looking to keep the inflation rate at an average of 2%, the AP said. There was no immediate word how it might adjust its fiscal policies to offset the increase in inflation.

A man shows his wallet with US dollars on a street in Havana, Cuba, in September 2020
A man shows his wallet with US dollars on a street in Havana, Cuba, in September 2020 AFP / YAMIL LAGE
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