July 30 (UPI) — A key signal that measures inflation in the United States increased by nearly 4% during the month of June, the Commerce Department said Friday.
The department said the personal consumption expenditures index, which is used by the Federal Reserve to examine inflation, was up 3.5% last month year-to-year.
That’s the highest 12-month increase since 1991.
The figure, however, was largely in line with what most analysts expected (3.6%).
The Fed has said in the past that the rise of inflation is temporary, and a reflection of economic growth since the start of the coronavirus pandemic.
Friday’s report said personal income rose 0.1% in June and disposable income fell less than 0.1%. Overall personal consumption expenditures increased 1%.
The report noted that pharmaceuticals, gasoline and non-durable goods aided in the inflation rise.