Inflation has reached another 40-year high. What does this mean for shoppers and the next Fed rate hike?

Inflation has reached another 40-year high. What does this mean for shoppers and the next Fed rate hike?

Inflation jumped again in June on a steady climb in gas, 

Inflation jumped again in June on a steady climb in gas, 

strengthen the Federal Reserve's plans for another big rate hike this month.

food and rental costs, reaching another 40-year high and is likely to

food and rental costs, reaching another 40-year high and is likely to

Prices rose 9.1% from a year earlier, up from an annual rate of 8.6% last month and the biggest gain since November 1981,

Prices rose 9.1% from a year earlier, up from an annual rate of 8.6% last month and the biggest gain since November 1981,

the Labour Department's Consumer Price Index showed on Wednesday. 

the Labour Department's Consumer Price Index showed on Wednesday. 

Economists surveyed by Bloomberg had estimated that inflation would rise to 8.8%.

Economists surveyed by Bloomberg had estimated that inflation would rise to 8.8%.

"Ouch," Ian Shepherdson, Chief Economist at Pantheon Macroeconomics,

"Ouch," Ian Shepherdson, Chief Economist at Pantheon Macroeconomics,

On a monthly basis, consumer prices rose by 1.3%, the biggest such jump since 2005 compared to a 1% increase in May.

On a monthly basis, consumer prices rose by 1.3%, the biggest such jump since 2005 compared to a 1% increase in May.

wrote in a research note of the latest rise in prices.

wrote in a research note of the latest rise in prices.

Amid signs that inflation is poised to slowly ease, he noted, along with other economists,

Amid signs that inflation is poised to slowly ease, he noted, along with other economists,

the possibility of June marking its peak, although a similar announcement in the spring proved premature.

the possibility of June marking its peak, although a similar announcement in the spring proved premature.

The report reinforces its key interest rate hike plan by a hefty three-quarters of a percentage point for a second straight month as part of the Federal Reserve's aggressive campaign to reduce inflation.

The report reinforces its key interest rate hike plan by a hefty three-quarters of a percentage point for a second straight month as part of the Federal Reserve's aggressive campaign to reduce inflation.

The development already disappointed Dour investors. After the latest figures were released, 

The development already disappointed Dour investors. After the latest figures were released, 

the Dow Jones Industrial Average sank by more than 300 points. The S&P 500 dropped 37 points, 3.03%.

the Dow Jones Industrial Average sank by more than 300 points. The S&P 500 dropped 37 points, 3.03%.

about 1%.  and the yields popped on the 10-year notes. In midmorning trading, they hovered at

about 1%.  and the yields popped on the 10-year notes. In midmorning trading, they hovered at