**Weekly Inflation Report: Prices Spike 0.5%, Highest Monthly Increase Since August**.
**Consumer prices rose 0.5% in June, the largest monthly increase since August.**.
The increase was driven by a surge in energy costs, which rose 3.5%. Food prices also rose, increasing by 0.7%..
The increase in inflation is a setback for the Federal Reserve, which is trying to bring inflation down to 2%. The Fed has raised interest rates three times this year in an effort to slow inflation, but the latest data suggests that more rate hikes may be needed..
**The increase in inflation is likely to hurt consumers, especially those on low incomes.**.
The rise in food and energy costs will eat into their budgets, leaving them with less money to spend on other goods and services..
**The inflation increase is also a concern for businesses.**.
It will make it more difficult for businesses to plan for the future and could lead to higher prices for consumers..
**The Fed is likely to raise interest rates again at its next meeting in July.**.
The Fed is expected to raise the target range for the federal funds rate by 50 basis points, which would be the largest increase since 2000..
**The Fed’s goal is to bring inflation down to 2%.**.
However, the latest data suggests that this will be a difficult task. Inflation is still rising, and the Fed is likely to need to raise interest rates further in order to bring it under control..
**Here is a breakdown of the inflation data:**.
* **Overall inflation:** 0.5%.
* **Food inflation:** 0.7%.
* **Energy inflation:** 3.5%.
* **Core inflation:** 0.3%.
**Core inflation excludes food and energy prices, which are more volatile.**.
The increase in core inflation suggests that inflation is becoming more entrenched in the economy..
**The Fed is likely to raise interest rates again at its next meeting in July.**.
The goal is to bring inflation down to 2%. However, the latest data suggests that this will be a difficult task..
