Just in May of this year, the cost of goods and everyday living expenses exceeded the old record high, hitting a fresh high for the first time in 40 years. This comes as annual inflation has hit 8.6% and consumer prices rose 1% in only one month from higher fuel, food, and housing prices.
Predictions from economists believed that inflation would begin to decline by this time, however the latest Department of Labor data disproved this estimate.
U.S. inflation continues to put an incredibly large financial burden on all families, causing them to have to spend more money on food, gas, and rent, which limits their ability to buy other things, like haircuts or electronics. Lower-income Americans especially are struggling due to essentials taking up a much higher portion of their income on average.
‘Put On Your Seat Belts On’: BlackRock President Warns Of Massive Shortages Due To Inflation https://t.co/ZbFkqFkrHm
— Daily Caller (@DailyCaller) March 30, 2022
The inflation data from the month of May was the absolute worst it has been since December of 1981. The most frustrating part of it all? This was the same week that President Biden asserted that the country was experiencing its finest recovery in history.
The Federal Reserve has also increased their interest rates at the fastest pace in nearly three decades, with the intention of cooling spending and growth enough to limit inflation without pushing the economy into a full-blown recession by drastically raising borrowing prices. Obviously we can assume it will be a challenging balancing act.
Inflation just hit a NEW 40-year high.
Overall CPI: +8.6% since last year
Fuel Oil: +106.7%
Meat, Poultry, & Fish: +13.1%
Used Cars: +16.1%
Airline Fares: +37.8%
Real Average Hourly Earnings: -3%
— Jacki Kotkiewicz (@jackikotkiewicz) June 10, 2022
The national average for a gallon of gas currently sits at $4.99, however prices at the pump continue to set new records almost every single day. The current price is up 62 cents from a month ago and $1.92 from a year ago.
Additionally, grocery costs have jumped 1.4 percent and over 12 percent over the previous year.
Not taking food and energy costs into consideration, inflation increased by 0.6 percent in May bringing the annual rate down from 6.2 percent to 6%.
The May report indicates that all six major food groups measured in the CPI increased in the last 12 months, “with five of the six jumping more than 10%” and eggs climbing more than 30%:
President Biden’s “build back better” plan has caused a wage decrease of 3.4 percent in the last year, when compared to jobs reports, showing earnings up 5.2 percent year over year.