Inflation rose 8.6% in May, the highest level since 1981

Inflation in May 2022 increased by 8.3%

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.

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