Inflation hits new record in June at 9.1 percent

HUNTSVILLE, Ala. (WAFF) - Surging gas, food and rent prices are skyrocketing U.S. inflation to historic highs, We hit another 40-year high in June.

Inflation rose to 9.1 percent. That is another half of a percent higher than the month before.

“This is a good news to bad news report.”

Local economist, Dr. Wafa Orman, says despite gas and transportation costs decreasing... All other expenses are up.

“I think we should all prepare to see more interest rate hikes, big ones coming. Clearly, what they did wasn’t enough.”

A new hike could hit renters the hardest.

“As leases end, of course, landlords are going to increase those rents. Unfortunately, That is something we saw in this month’s report. We saw shelter prices which is basically rent, start to show up.”

Dr. Orman says we will not see a decrease in housing prices… yet.

“All the rates are about where they were at in 2006 and 2007 when we had a huge housing bubble. These mortgage rates are not high enough to prevent houses from dropping. People can still afford mortgages at these rates. It just depends on the price of the house.”

She says mortgage rates are exceptional compared to 2008.

“Last time inflation was this high, interest rates were at 17, 18, 20 percent.”

So what is next for our inflation rate?

“The optimistic view is that gas prices come down, and that brings down the headline rate. The pessimistic view would be if rent continues to increase a lot and more and more people’s leases come to an end, and we start to see that increase. Services are seeing high inflation, and if that continues, our inflation will remain high, and that’s a problem.”

Copyright 2022 WAFF. All rights reserved.