Inflation jumped to 4.2% in June 2026, the highest since early 2023, driven by rising energy and housing costs. - The CPI rose 4.2% year-over-year, exceeding forecasts.
- Wage growth lagged at 3.4%, reducing real income for workers. - Core inflation hit 3.8%, above the Fed's 2% target.
- Energy prices surged 6.1% month-over-month, while shelter costs rose 0.5%. The data raises the likelihood of delayed interest rate cuts, impacting borrowing costs and economic growth.