Inflation accelerated again in May, rising to the highest level seen in four decades, dispelling hopes that the number had peaked, according to data released by the federal government on Friday.
The consumer price index or CPI stood at 8.6% year-on-year in May, a significant increase from 8.3% the previous month, according to the US Bureau of Labor Statistics. This is the largest increase in 12 months since December 1981.
On a monthly basis, the consumer price index rose 1% in May, well ahead of the 0.3% rise in April, according to the bureau.
The pricing plate at Bloomington Sunoco on South Walnut Street shows $ 5.26 per gallon on June 7, 2022. Record high Sunoco gas prices
Rich Janzaruk / Herald-Times through the USA Today network
The costs of energy, food and housing contributed to the rise in prices. The new figures come a day after the nationwide average price per gallon of gas reached $ 5, according to GasBuddy.
The main consumer price index, which excludes food and energy spending, rose 0.6% on a monthly basis in May, the same increase it saw in April, according to the Bureau of Labor Statistics.
“The increases were almost ubiquitous,” said Greg McBride, chief financial analyst at personal finance consulting firm Bankrate. “You just have nowhere to hide.”
“Inflation continues to raise its ugly head and hopes for improvement are dashed again,” McBride added.
Gas prices are shown at Walt Whitman Rd’s BP gas station. Done at Melville, New York, June 1, 2022.
Newsday Llc / Newsday via Getty Images
Energy prices rose sharply last month, by 3.9% on a monthly basis after falling 2.7% the previous month. In particular, gasoline prices rose even higher than the overall energy index, rising 4.1% last month.
Food prices also jumped in May, up 1.2% last month. In particular, the index for dairy and related products rose by 2.9%, the highest monthly increase for these products since July 2007.
“Given the impact of [Vladimir] Rising Putin’s prices on the pump, on gas prices in May, we expect headline inflation to rise, “White House spokeswoman Karin Jean-Pierre told reporters on Wednesday in anticipation of Friday’s report.” And we expect the war in Ukraine also have some effect on core inflation, especially when you get things like plane tickets and the effect of higher aircraft fuel costs. But despite these disruptions and the fact that the numbers may be volatile from month to month … we continue to believe that the economy can move … to stable, steady growth and reduced inflationary pressures, which is what experts they have been saying for some time. “
The new data came when the Federal Reserve is due to convene next week and is expected to raise its key interest rate as part of efforts to reduce inflation.
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