The U.S. annual inflation rate defied expectations and rose to a new multi-decade high of 9.1 per cent in the year up to June.

The U.S. Bureau of Labour Statistics said Wednesday that the cost of living rose by 1.3 per cent in the month of June alone, and in three of the past four months.

Rising costs for gasoline, shelter and food were the main drivers of the annual uptick. Energy prices have increased by 41.6 per cent in the past year. Food costs are up by 10.4 per cent. Shelter costs are up by 5.6 per cent.

Economists had been expecting the rate to decline slightly from the 

 reached the month before, but instead it ticked even higher, reaching&nbsp;its highest point since 1981.

Royce Mendes, an economist with financial services conglomerate Desjardins&nbsp;called the numbers "red hot" and says they will likely compel the U.S. central bank to raise its lending rates even more aggressively in the coming months, upping its rate by 0.75 of a percentage point in August and again in September.

"The Fed will take some relief from the fact that commodity prices and market-based inflation expectations have been falling recently. But that won't be enough to alter their near-term plans," he said in a note to clients.

U.S. central bank hikes interest rate by biggest amount since 1994

The Federal Reserve has raised its benchmark interest rate by 75 basis points to a range of up to 1.75 per cent, its most aggressive hike in almost 27 years as the U.S. central bank scrambles to rein in runaway inflation.

A man with grey hair and glasses holds his hands in front of his face at a press conference.

Jerome Powell, chairman of the U.S. Federal Reserve, during a Senate Banking, Housing and Urban Affairs Committee hearing in Washington, D.C., U.S., on Tuesday, Sept. 28, 2021. The Treasury secretary today warned that her department will effectively run out of cash around Oct. 18 unless legislative action is taken to suspend or increase the federal debt limit, putting pressure on lawmakers to avert a default on U.S. obligations. Photographer: Matt McClain/The Washington Post/Bloomberg

Jerome Jay Powell

Jerome Powell, chairman of the U.S. Federal Reserve, is shown at a meeting with government leaders last year. Like many central banks around the world, the U.S. Federal Reserve has become increasingly worried about skyrocketing inflation.

The cost of living increased by 1.3 per cent in the month of June alone, official U.S. data showed Wednesday.

No slowdown yet in U.S. inflation, as rate rises to 9.1% in June

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