US GDP Inflation Soars in Q2, Core Measures Hit Multi-Year Highs
According to the Bureau of Economic Analysis, the US experienced a 6.3% annualized inflation rate in Q2, the highest since Q2 2022, as indicated by the GDP deflator. In comparison to the previous year, GDP inflation increased by 4.3%, marking the worst performance since Q1 2023. Core GDP inflation, which excludes food and energy prices, saw a rise of 4.4% annualized in Q2 and 3.8% year-over-year. Additionally, the quarterly PCE price index surged by 5.1% annualized and 3.8% year-over-year, while the core PCE index climbed by 3.4% annualized and 3.3% year-over-year. Wolf Richter has criticized the Federal Reserve for its lack of action, highlighting the highest 30-year Treasury yield since 2007.
Key facts
- GDP deflator inflation rose 6.3% annualized in Q2 from Q1, worst since Q2 2022.
- Year-over-year GDP inflation jumped 4.3%, worst since Q1 2023.
- Core GDP inflation (ex-energy and food) rose 4.4% annualized in Q2, worst since Q1 2023.
- Year-over-year core GDP inflation rose 3.8%, worst since Q2 2023.
- Quarterly PCE price index jumped 5.1% annualized in Q2, second worst since Q1 2022.
- Year-over-year PCE price index rose 3.8%, worst since Q2 2023.
- Core PCE price index rose 3.4% annualized in Q2, second worst since Q1 2024.
- Year-over-year core PCE price index rose 3.3%, worst since Q2 2023.
- Inflation has been accelerating for four consecutive quarters on a year-over-year basis.
- 30-year Treasury yield reached highest level since 2007.
Entities
Institutions
- Bureau of Economic Analysis
- Federal Reserve
- WOLF STREET
Locations
- United States