Inflation rebounded in May, rising to a four-decade high, destroying hopes that the figure would have peaked, according to data released Friday by the federal government.
The consumer price index, or CPI, stood at 8.6% year-on-year in May, a significant increase from 8.3% the previous month, according to the U.S. Bureau of Labor Statistics. This is the largest increase in 12 months since the end of December 1981.
On a monthly basis, the consumer price index rose 1% in May, far exceeding the 0.3% increase seen in April, according to the office.
A Bloomington Sunoco price sign on South Walnut Street shows $ 5.26 per gallon of regular on June 7, 2022. Gasoline prices are Sunoco records
Rich Janzaruk / Herald-Times via the USA Today network
Energy, food and housing costs contributed to rising prices. The new data comes a day after the national average price of a gallon of gasoline reached $ 5, according to GasBuddy.
The basic consumer price index, which eliminates food and energy costs, rose 0.6% monthly in May, the same increase it saw in April, according to the Bureau of Labor Statistics .
“The increases were almost ubiquitous,” Greg McBride, chief financial analyst at personal finance advisory firm Bankrate, said in a statement. “There is no place to hide.”
“Inflation continues to raise its ugly head and hopes for improvement have once again been dashed,” McBride added.
Gasoline prices are shown at BP Gas Station on Walt Whitman Rd. In Melville, New York, June 1, 2022.
Newsday Llc / Newsday via Getty Images
Energy prices rose sharply last month, 3.9% month-on-month after falling 2.7% the previous month. In particular, gasoline prices rose even more than the global energy index, rising 4.1% last month.
Food prices also rose in May, up 1.2% last month. It should be noted that the dairy and related products index rose by 2.9%, the highest monthly increase in these products since July 2007.
“Given the impact of [Vladimir] Putin’s rise in bomb prices, in gas prices in May, we expect the general inflation figure to rise, “White House Press Secretary Karine Jean-Pierre said on Wednesday. “And hopefully the war in Ukraine will also have some effect on core inflation, especially when you get things like air fares and the effect of higher fuel costs for aircraft. But despite these disruptions and the fact that the numbers may be volatile from one month to the next … we still believe that the economy can make the transition … to stable, steady growth and moderate inflationary pressures, which That’s what experts have been saying for a while now. “
New data emerged when the Federal Reserve meets next week and is expected to raise its benchmark interest rate as part of an effort to curb inflation.