Inflation hits new 40 year high

On July 15, 2022, in Inflation, by David Elrod

The Bureau of Labor Statistics (BLS) Consumer Price Index (CPI) rose 9.1 percent in May compared to last year, the highest level since 1981.

That level outpaces April’s rate of 8.3 percent and 8.5 percent in March.

According to the CPI, which is a measure of the prices consumers are paying for finished goods, fuel oil rose at 98.5 percent, gasoline rose at 59.9 percent, utility gas service rose at 38.4 percent, margarine rose at 34.5 percent, eggs rose at 33.1 percent, hot dogs rose at 16.3 percent, health insurance rose at 17.3 percent, and delivery services rose at 14.4 percent.

Energy prices alone rose 7.5 percent in just the last month.

Chicken rose 18.6 percent year-over-year, about in line with bakery products, flour, milk, and peanut butter.

The core price index, which is the CPI excluding often-volatile categories like food and energy, still increased

Meanwhile, the Producer Price Index (PPI), which reflects what suppliers are charging businesses and other customers and is generally considered the core metric of input price changes, is up 11 percent in April compared to last year. That number outpaces the CPI by 1.9 percent.