KEY POINTS
  • The latest consumer price index data this week revealed a searing 9.1% increase year over year in June, prompting Treasury Secretary Janet Yellen to say that inflation in the U.S. is "unacceptably high."
  • The causes behind the steep jumps include high energy prices, pandemic stimulus spending and geopolitical crises — but one investor is blaming millennials.

Soaring inflation is putting markets on edge and triggering fears of a recession. The latest consumer price index data this week revealed a searing 9.1% increase year over year in June, prompting Treasury Secretary Janet Yellen to say that inflation in the U.S. is "unacceptably high."

The causes behind the steep jumps include high commodity and energy prices triggered by supply shortages and Russia's war in Ukraine, record government spending packages on economic stimulus and low interest rates amid the Covid-19 pandemic, and continuing labor shortages and supply chain problems meeting increased demand.