The cost of living in America is on an upward trend, and this is not only due to the recent rise in the price of gas. Data from the US Bureau of Labor Statistics in May 2022 showed that consumer prices in general accelerated at their fastest pace since 1981. Why? Total increases in the price of gasoline, food and housing.
The Bureau of Labor Statistics’ Consumer Price Index (CPI) showed an annual increase of 8.6% in May 2022, up from 8.3% in April. That’s well above the 8.3% forecast, according to estimates by economists compiled by Bloomberg.
According to the BLS, the CPI of all items without nutrients and energy rose 0.6 percent in May. While nearly all major components of the CPI increased, the largest contributors were shelter, airfares, used cars and trucks, and new vehicles. The cost of medical care, furnishings, home operations, clothing and entertainment also rose in May. Energy costs rose by a whopping 34.6%, the largest increase since September 2005.
The May CPI is not only a measure of the costs Americans pay daily for groceries, gas and housing, but it also comes ahead of next week’s Federal Reserve rate-setting meeting. Stock futures fell Investors expect that the Federal Reserve will need to raise interest rates to curb inflationary pressures.
Inflation has been a constant headache for the White House and the Biden administration. Administration officials cite supply chain issues related to the COVID-19 pandemic, disruptions from huge demand for goods and services and the Russian attack on Ukraine as contributing factors to price hikes across America today.
source: US Bureau of Labor Statistics.
James Hendrickson is an internet entrepreneur, addictive blogger, fisherman and personal finance expert. When he’s not lurking in the cafes in Portland, Oregon, you’ll find him in the great outdoors of the Pacific Northwest. James holds an MA in Sociology from the University of Maryland in College Park and a BA in Sociology from Earlham College. Likes individual stocks, bonds, and precious metals.