WSJ: Inflation Hits 4-Decade High

WSJ headline: U.S. Inflation Reached a New Four-Decade High in June, Economists Estimate

Rising housing costs are putting pressure on prices, but lower gasoline costs and a glut of retail goods could be turning point in inflation surge

U.S. inflation is estimated to have reached a new four-decade high in June, but falling gasoline prices and discounting at some retailers could be signs of moderating price pressures, economists say.

The consumer-price index is expected to have increased 8.8% in June from the same month a year ago, according to economists surveyed by The Wall Street Journal. That would be higher than May’s annual rate of 8.6% that led Federal Reserve officials to shift to a faster pace of benchmark interest-rate increases, according to meeting minutes released last week. The Labor Department will release the June inflation report at 8:30 a.m. ET Wednesday.

Core prices, a measure that strips out volatile food and energy components, are estimated to have increased by 5.7% in June from a year ago, a slower pace than May’s 6%, economists said. The month-to-month increase is estimated to have slowed slightly.

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