Demand for second-hand vehicles is among factors driving prices higher
American prices grew at their fastest pace in 13 years last month, comfortably beating forecasts and reviving concerns that interest rates may have to rise and support for the economy be cut earlier than expected.
Jerome Powell, chairman of the Federal Reserve, has repeatedly insisted that the sharp increase in prices is transitory despite fears that the US economy could overheat as Covid-19 restrictions are lifted and large parts of America reopen for business.
The headline consumer price index rose by 0.9 per cent on a monthly basis in June — its highest reading since the same month of 2008 — eclipsing forecasts that it would slip back to 0.5 per cent, from 0.6 per
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