U.S. Inflation Reaches a New 40-Year High
The price of goods and services in the U.S. continued to soar in June despite efforts by the Federal Reserve System to curb inflation. The Consumer Price Index (CPI) for All Urban Consumers, a measure of price changes commonly referred to as the inflation rate, increased 9.1% on an annual basis in June 2022, according to the Bureau of Labor Statistics. That was the biggest year-over-year jump in prices since November 1981 and was up from the 8.6% annual increase in May. Inflation has remained at 40-year highs for eight consecutive months, the biggest price surges since the 1981-1982 time period, when the country was in a severe economic recession. The increase in inflation was broad-based, with rising prices in gasoline, shelter and food being the largest contributors. Energy prices were up 41.6% in the year-ending June, with gasoline prices climbing 59.9%, as the war in Ukraine has driven up energy costs. The cost of shelter rose 5.6% over the past year, the largest 12-month increase since February 1991. Food prices continued to edge higher, climbing 10.4% on an annual basis, the second consecutive double-digit increase since 1981. The recent overall increase in consumer prices was also partly attributed to surging prices of new vehicles, as the price of new cars and trucks was up 11.4% in the year-ending June. Additionally, the cost of airline fares continued to climb, up 34.1% over the past year, though that was down from the 37.8% annual increase in May.