Led by shelter, gas and food, consumer prices in the central Bay Area jumped 6.8% last month compared to a year ago, according to data released Wednesday by the U.S. Bureau of Labor Statistics.
Sharply lower than the latest national average of 9.1%, also released Wednesday, it is the highest annual increase in the region since 1984. The 9.1% increase nationwide is a four-decade high.
"Today's report is a reminder that inflation is too high," President Joe Biden said on Twitter following the national report.
Biden added that the numbers are dated, since oil prices have dropped $20 a barrel recently and gas prices have dropped 40 cents a gallon. Core inflation, which excludes food and energy, is down for the third month in a row, the president said.
Regionally, the increase in the cost of gas contributed the most to the rise in June prices, said Todd Johnson, an economist with BLS in San Francisco. 22% of the 6.8% inflation was due to gas, he said.
About 17% of the June increase was due to shelter and 15% was due to food, Johnson said.
Prices in June in the Bay Area were up 1.7% from two months ago. The consumer price data is not seasonally adjusted. Technically, it reflects the conditions in Alameda, Contra Costa, San Francisco, San Mateo and Marin counties.
Core inflation in the Bay Area was up by 4.4% compared to last June.
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Inflation nationwide has prompted the U.S. central bank, the Federal Reserve, to raise a key interest rate to tamp down prices. That has some people fearing a recession is looming or is already here.
The Federal Reserve last month raised the target for the federal funds rate, that key interest rate, by 75 basis points to 1.5 to 1.75%. Higher interest rates generally lead to less borrowing and consumer spending, the main driver of economic growth.
