June's jump in consumer prices was the biggest year-over-year increase for any month since 2008 — a surprising 5.4%, with used cars and trucks responsible for one-third of the surge.
Why it matters: The White House was counting on fleeting inflation. Now, it's starting to look like it could last.
Many of the biggest gains were for goods and services we need as we go back into the world: Plane tickets, hotels, restaurants and cars all jumped.
- Cars — rental and used — are the biggest culprit, accounting for nearly half of the 0.9% increase from May. But there's evidence that car inflation has peaked.
A silver lining: Price jumps in hospitality, including a 0.7% increase for restaurants, are a result of a rise in wages.
What's next: Economists expect inflation will cool off in the second half — especially if car prices start to revert to normality.