Americans racked up $40.1 billion in debt in June, the Federal Reserve said Friday afternoon. The figure was considerably higher than economists forecast, after the revised total of $23.8 billion in May.
Americans’ borrowing rose 10.5% in June, from 6.3% in May, according to the Fed’s G.19 consumer credit report. Revolving debt — roughly an indicator of outstanding credit card balances — rose 16% after rising 7.8% in May.
Non-revolving debt, which includes loans like car loans and student loans, rose 8.8% after rising 5.8% in May. These figures exclude mortgage balances, which represent the bulk of household debt.
Quarter over quarter, Americans borrowed an additional $98.9 billion, the Fed said. Friday’s report follows a separate statement from the New York Fed that reported Americans’ non-housing debt ballooned by $103 billion in the second quarter, the biggest increase since 2016.
The jump comes as inflation remains at its highest level in four decades. Last month, the Bureau of Labor Statistics reported inflation soared to an annualized 9.1% in June, with increases on food, gas and a broad-based increase in nearly every category triggered by a combination exorbitant energy costs and supply problems.