U.S. inflation rises to 8.6% in May 

The Fellowship of Penny Calling Penny
June 13, 2022
U.S. inflation

Disclaimer: Penny Calling Penny is an affiliate website. This means that we get a small commission when you click some of the links in this article. Don’t worry – we’ll never recommend anything we wouldn’t use ourselves.

U.S. consumer inflation surged to a four-decade high of 8.6% in May as increasing energy and food costs pushed prices higher.

The data released by the Labor Department on Friday said that the consumer price index increased to 8.6% from the same month a year ago, the biggest increase since December 1981.

CPI, which measures what consumers pay for goods and services, jumped to 1% compared to April, after the modest 0.3 percent gain in the prior month, far higher than expected by analysts who were looking for inflation pressure to ease slightly.

May’s increase was driven by sharp rises in energy, which rose 34.6% from a year earlier, and groceries, which jumped 11.9% on the year, the biggest increase since 1979.

Food and fuel prices have soared in recent weeks since the Russian invasion of Ukraine sent global oil and grain prices up, and American drivers are facing daily record gas prices.

The data showed that gasoline jumped 4.% in the month, with big gains in housing, airline fares, and used and new vehicles.

More From Penny Calling Penny
What is Dollar-Cost Averaging and Why Does it Matter?
What are I Bonds? A Nearly Risk-Free Investment to Get Returns
Pride Month 2023: LGBTQ+ Ideas, Resources, and Ways to Be an Ally

Prices for used cars and trucks rose 1.8% in May from April. Housing was up at 5.5% and airline fares rose to 12.6% on the month, the third straight double-digit rise.

On a 12-month basis, the core-price index increased 6% in May, down from 6.2% in April. March’s 6.5% rise was the highest rate since August 1982. The annual rate of inflation has risen sharply since early 2021, when the U.S. economy’s rebound from the pandemic accelerated, leading to supply disruptions and other imbalances that put upward pressure on prices for longer than policymakers anticipated.

The Feds have been watching closely for signs that inflationary pressures are ebbing and will meet again this week to consider whether to raise rates aggressively to tame inflation. Feds officials on May 4 lifted short-term interest rates by 0.5%, marking the largest increase in rates since the year 2000.

About

Your Financial Success Starts Here

pcp-sb-2

Actionable Tips and Freebies Delivered Straight to Your Inbox! Subscribe Now!

(By subscribing, you agree to our terms & conditions, privacy policy, and disclaimer.)

You May Also Like

Was this article helpful? We'd love to hear from you!

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
search-leftline

SEARCH

search-leftline
save 10000 in 26 weeks printable

Are you up for the challenge of saving $10,000 in 26 weeks?

save 10000 in 26 weeks printable

Are you up for the challenge of saving $10,000 in 26 weeks?

This printable tracker will guide you week by week to reach your goal of saving $10,000. Whether you’re planning a big purchase or building an emergency fund, this tracker will keep you on the right path.

(By subscribing, you agree to our terms & conditions, privacy policy, and disclaimer.)

check your email

Woohoo!

Your Printable is en route!

Check your promotion, junk, and spam folders: Sometimes, our emails can end up in unexpected folders.

Thanks

Team Penny Calling Penny!

(By subscribing, you agree to our terms & conditions, privacy policy, and disclaimer.)