As food, gas, and housing expenses increase, US inflation reaches a 40-year high of 8.6%

June 21, 2022

According to the US Labor Department, inflation in the United States unexpectedly surged to a new four-decade high of 8.6 percent last month.

The cost of living grew by one percentage point in April, according to the latest consumer price index (CPI) numbers, and the increase was broad-based, with the indexes for shelter, gasoline, and food contributing the most.

Gas prices have been rising across the United States, with rates approaching $5 per gallon this week, up $1.90 from a year earlier. The energy index increased 3.9 percent during the month, while the gasoline index increased 4.1 percent, according to the latest CPI report. Other important component indexes rose as well. In May, the food index jumped by 1.2 percent, while the food at home index increased by 1.4 percent.

The increase in May was fueled by substantial increases in energy prices, which increased 34.6 percent year over year, and groceries, which increased 11.9 percent year over year. Because food and energy prices are more volatile than other CPI categories, the Labor Department publishes a “core prices” index that eliminates them. It increased by 0.6 percent from April.

The annual increase in inflation was more than economists had predicted, rising from 8.3 percent in April. Inflation has reached levels last seen in December 1981. The Federal Reserve will meet next week and is expected to boost interest rates once again as it tries to contain surging prices.

Source: The Guardian
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