U.S. inflation tops 9.0%: nothing here that ‘doesn’t indicate peak’

U.S. inflation climbed significantly to a new forty-year high of 9.1% in June.
Jim Cramer says everything in the CPI print is indicating peak inflation.
The benchmark S&P 500 index is down nearly 2.0% on Wednesday morning.

The S&P 500 index is down 2.0% on Wednesday after the U.S. Bureau of Labour Statistics said inflation climbed significantly to a new forty-year high of 9.1% in June.

Jim Cramer reacts to the CPI print

The Dow Jones estimate was for a narrower 8.8% year-over-year increase. Interestingly, however, Jim Cramer still doesn’t read the CPI print as very negative. Explaining why on CNBC’ “Squawk Box”, he said:

Core inflation, excluding food and energy, was up 5.9% in June versus a 5.7% increase expected. On a monthly basis, headline and core CPI went up 1.3% and 0.7%, respectively.

Cramer remains constructive on stocks

Since the CPI report tends to be backward looking, the Mad Money host sees “opportunity” in the U.S. equities in the red on Wednesday. He added:

Cramer, however, is still in favour of a 100 bps increase in interest rates. The U.S. central bank is scheduled for its next policy meeting on July 27^th.