The most recent data from the US Bureau of Labor Statistics reveals that the national Consumer Price Index, a key measure of consumer goods inflation, skyrocketed to unprecedented levels in May. Specifically, the CPI surged by 8.6%, marking the highest increase since December 1981.
This report comes as no shock as the United States has been grappling with rising prices due to a convergence of factors such as ongoing supply chain disruptions, oil challenges resulting from the conflict in Ukraine, and stagnant wages across various job sectors.
John Leer, the chief economist at Morning Consult, expressed disappointment in response to May’s inflation figures, stating, “We’re just not yet seeing any signs that we’re in the clear.”
U.S. inflation reached a new four-decade high of 8.6% in May https://t.co/iT5EkVYITo
— The Wall Street Journal (@WSJ) June 10, 2022
The Federal Reserve is actively working to curb surging prices by considering interest rate hikes. The release of this report has made such rate increases more likely and potentially more severe.
Julian Brigden, the president of MI2 Partners, remarked, “Obviously, nothing is good in this report. There is nothing in there that’s going to give the Fed any cheer. … I struggle to see how the Fed can back off.”
