US inflation rates hit a 40-year record high of 8.6%, representing a harsh increase from its May level of 8.3%.
The rising inflation was triggered by surging energy prices, with the conflict in Ukraine continuing to drive prices to uncomfortable heights and the benchmark Brent Crude price hovering around $120 per barrel at its peak in May.
Core inflation eased slightly to 6.2% from 6%, although the figure was still higher than expected.
The market had been buzzing with hopes that inflation had reached its peak in April, however the recent figures have sent optimism plummeting.
International markets have felt the nasty shock of the increased inflation, with the NASDAQ down 3% to 11,391.5, the FTSE 100 falling 2.3% to 7,301.2 and the German DAX dropping 3% to 13,773.1.
The reports have all but guaranteed a 0.5% interest rates hike by the US Federal Reserve next week, which will have Fed guidance almost certainly tilting in a more hawkish direction.
