RALEIGH – Inflation is still occurring in the U.S. economy.  The latest figures from the U.S. Bureau of Labor Statistics shows that over the last 12 months, the consumer price index increased by 8.6% before adjustment.

That’s the largest 12-month increase since 1981.

The news release was issued at 8:30 a.m. this morning.

According to the statement, inflation is “broad-based, with the indexes for shelter, gasoline, and food being the largest contributors.”

Inflation is still occurring, and it’s yet to be known whether the worst is over.

U.S. households are seeing no relief, said Dr. Michael Walden, an economist and a William Neal Reynolds Distinguished Professor Emeritus at North Carolina State University, in an interview with WRAL TechWire on Friday.  “Indeed, price increases continue to outstrip wage gains, so households are seeing their standard of living drop.”

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Gas, food prices still on the rise

“Transportation price increases led the inflation surge,” said Walden.

The gasoline index increased by 4.1% and the food at home index increased by 1.4% just last month, the fifth consecutive monthly increase.

Over the 12 prior months, the energy index increased by 34.6% and the food index increased by 10.1%.  That’s the first increase of more than 10% in the food index since March 1981, the report noted.

And the numbers are higher for food at home, which increased 11.9% in the prior 12 month period preceding the report.  The index for meats, poultry, eggs, and fish increased the most, up 14.2%, driven in part by an increase of 32.2% in the price of eggs.

And though the energy index rose 34.6% over the past 12 months, the gasoline index increased 48.7% over the time period.

But the largest increase in energy costs came in the price of fuel oil, which more than doubled, according to the data.  That index rose 106.7% which the statement notes is “the largest increase in the history of the series, which dates to 1935.”

Relief may not come soon, and if it does, that could mean that economic growth is slowing, noted Walden.  “We may see improvement on inflation, but at the expense of jobs and incomes,” said Walden.

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Other prices rising, too

Other areas of the economy where prices are rising, according to the new consumer price index data include airline fares, which rose 12.6% in May after increasing 18.6% in April.

And the price of used cars and trucks has again increased.  In May, the index for used vehicles rose by 1.8%, and the index for new vehicles increased 1% in May as well.

The next inflation figures tied to the consumer price index will be released on Wednesday, July 13, the statement from the Bureau of Labor Statistics noted.

And even if the rate decreases, it doesn’t mean that prices aren’t rising.  In fact, even with an inflation rate decrease, said Walden, “it means prices are still rising, but just not as fast.”

Prices of consumer goods and services may not ever return to pre-pandemic levels, said Walden.  “On most items, we will not go back to the prices of two years ago, before the price surge,” he noted.

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