US Inflation Hit 40-Year High 8.6% Last May

According to data, inflation in the U.S. has grown 8.6 percent in 12 months. Jun. 10, 2022.

Published 10 June 2022

Opinion

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On Friday, the Labor Department released data that indicated that inflation in the U.S. had grown by 8.6 percent in May.

According to the CPI consumer price index, which registered 8.6 percent in 12 months, a maximum since December 1981, according to Labor Department data released Friday, Inflation in the United States gained strength again in May.

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In comparison with April, the price increase was 1.0 percent month-to-month, while it only grew 0.3 percent between March and April. The figure is higher than analysts' expectations. Experts predicted a stable annualized inflation compared to the April figure. In the month, they expected a 0.7 percent increase.

Gasoline prices rose 4.1 percent in May, while housing, airline tickets, and vehicles also increased in price. Items such as medical care, furniture, leisure, and clothing also suffered increases. Energy prices rose 34.6 percent in a year, their most significant increase since September 2005. Food prices had their largest increase since March 1981, increasing by 10.1 percent in 12 months.

Gregory Daco, the chief economist at EY-Parthenon, said that these data indicate that inflation will not ease quickly. "CPI (consumer price-based) inflation will likely be above 6 percent in December," he added.

May #CPI: US inflation jumps to a 40 year high of 8.6% ��

Headline and core #inflation both increased more than expected => Fed will keep interest rates aggressively for longer pic.twitter.com/WuHKDsTmtA
— Deeyn Brietta (@BriettaDeeyn) June 11, 2022

Without taking into account the more volatile inflation and energy prices which have risen since the beginning of the Russian special military operation in Ukraine, the core inflation was similar to April in the month-over-month comparison (0.6 percent). Taking the data to a detailed analysis, core inflation was slightly lower than the 12-month reading last month, at 6 percent.

During its address to the nation, President Joe Biden will call on the House of Representatives to vote next week on a bill adopted in March by the Senate, which seeks to prevent ocean carriers from inflating their prices, which affects the goods consumers buy.

Biden described the inflation matter as his "top domestic policy priority" in the scenario of the coming mid-term elections, which will renew part of the legislature in November.