US prices rising at fastest rate for 40 years

Despite high petrol and food costs, US prices are rising at their fastest rate in more than 40 years.

The Labor Department reported that inflation reached 9.1% in the 12 months to June, an increase of 1.3% over May.

In the US, petrol prices hit record highs last month, averaging over $5 per gallon.

This has led to predictions that interest rates will be raised further by the US central bank later this month.

Having risen from 8.6% in May, the US inflation rate has now reached its highest level since November 1981.

Due to Covid's supply chain disruptions and severe weather, food prices in the US have been rising since late last year.

Global commodity prices have also been pushed up by the war in Ukraine.

Additionally, some economists blame President Biden's Covid spending programs for exacerbating price increases.

To protect households and businesses from the economic shock of the pandemic, it deployed $5tn (£4.1tn) of stimulus.