Inflation hits 40-year high as CPI rises 8.6% in May

D

dukkha

Verified User
U.S. consumer prices accelerated in May at the fastest rate since 1981, as Americans grapple with a surge in the cost of gas, food, and shelter, data showed Friday.

The Bureau of Labor Statistics' May Consumer Price Index (CPI) showed a year-over-year increase of 8.6% last month, up from 8.3% in April. Economists were expecting an 8.3% increase in May, according to estimates compiled by Bloomberg.

The biggest contributors to the latest jump in inflation were shelter, gasoline, and food, according to the BLS. The energy index rose 3.9% month-on-month in May, with the gasoline index rising 4.1%. Compared to the prior year, energy prices in May were up 34.6%, the most since September 2005.

Meanwhile, the food index rose 1.2% from April to May and 10.1% over the prior year, the largest jump since March 1981.
https://finance.yahoo.com/news/may-inflation-data-june-10-2022-212834308.html
 
Surging food, gas and energy prices all contributed to the gain, with fuel oil up 106.7% over the past year.

Shelter costs, which comprise about one-third of the CPI, rose at the fastest 12-month pace in 31 years.

The rise in inflation meant workers lost more ground in May, with real wages declining 0.6% from April and 3% on a 12-month basis.

Friday’s numbers dented hopes that inflation may have peaked and adds to fears that the U.S. economy is nearing a recession.

The inflation report comes with the Federal Reserve in the early stages of a rate-hiking campaign to slow growth and bring down prices. May’s report likely solidifies the likelihood of multiple 50 basis point interest rate increases ahead.

“Obviously, nothing is good in this report,” said Julian Brigden, president of MI2 Partners, a global macroeconomic research firm. “There is nothing in there that’s going to give the Fed any cheer. ... I struggle to see how the Fed can back off.”
https://www.cnbc.com/2022/06/10/consumer-price-index-may-2022.html
 
Biden and Treasury Secretary Janet Yellen both have emphasized that much of the responsibility for lowering inflation belongs to the Fed. The administration has largely denied that the trillions of dollars directed toward Covid aid played a major role.

How much the central bank will have to raise rates remains to be seen. Former Treasury Secretary Larry Summers recently released a white paper with a team of other economists that suggests the Fed will need to go further than many are anticipating. The paper asserts that the current inflation predicament is closer to the 1980s situation than it appears because of differences in the ways that CPI is computed then and now. https://www.cnbc.com/2022/06/10/consumer-price-index-may-2022.html
 
dukkha said:
Surging food, gas and energy prices all contributed to the gain, with fuel oil up 106.7% over the past year.

Shelter costs, which comprise about one-third of the CPI, rose at the fastest 12-month pace in 31 years.

The rise in inflation meant workers lost more ground in May, with real wages declining 0.6% from April and 3% on a 12-month basis.

Friday’s numbers dented hopes that inflation may have peaked and adds to fears that the U.S. economy is nearing a recession.

The inflation report comes with the Federal Reserve in the early stages of a rate-hiking campaign to slow growth and bring down prices. May’s report likely solidifies the likelihood of multiple 50 basis point interest rate increases ahead.

“Obviously, nothing is good in this report,” said Julian Brigden, president of MI2 Partners, a global macroeconomic research firm. “There is nothing in there that’s going to give the Fed any cheer. ... I struggle to see how the Fed can back off.”
https://www.cnbc.com/2022/06/10/consumer-price-index-may-2022.html
Click to expand...


the rare stagflation is back and with a vengeance.

buckel up kids, its going to be a bumpy ride.
 
Life is Golden said:
Yep, this is a shit show, all right. How much more damage can Brandon do to the US?
Click to expand...
Did Biden lock down China?

Can Biden force oil companies to increase production?

Did Biden cause Putin to invade Russia? What exactly could Biden have done to alleviate these problems? I’d like to hear conservative solutions to these problems, thanks.
 
dukkha said:
U.S. consumer prices accelerated in May at the fastest rate since 1981, as Americans grapple with a surge in the cost of gas, food, and shelter, data showed Friday.

The Bureau of Labor Statistics' May Consumer Price Index (CPI) showed a year-over-year increase of 8.6% last month, up from 8.3% in April. Economists were expecting an 8.3% increase in May, according to estimates compiled by Bloomberg.

The biggest contributors to the latest jump in inflation were shelter, gasoline, and food, according to the BLS. The energy index rose 3.9% month-on-month in May, with the gasoline index rising 4.1%. Compared to the prior year, energy prices in May were up 34.6%, the most since September 2005.

Meanwhile, the food index rose 1.2% from April to May and 10.1% over the prior year, the largest jump since March 1981.
https://finance.yahoo.com/news/may-inflation-data-june-10-2022-212834308.html
Click to expand...

Natural consequence of printing money for 12 years.

Would have been worse if we had waited 4 more.
 
dukkha said:
Biden and Treasury Secretary Janet Yellen both have emphasized that much of the responsibility for lowering inflation belongs to the Fed. The administration has largely denied that the trillions of dollars directed toward Covid aid played a major role.

How much the central bank will have to raise rates remains to be seen. Former Treasury Secretary Larry Summers recently released a white paper with a team of other economists that suggests the Fed will need to go further than many are anticipating. The paper asserts that the current inflation predicament is closer to the 1980s situation than it appears because of differences in the ways that CPI is computed then and now. https://www.cnbc.com/2022/06/10/consumer-price-index-may-2022.html
Click to expand...

The administration is, s usual, wrong just as they have been all along on everything to do with the economy including the silly corporate greed which Yellen herself shot down.

THe Fed has to fix it and they have to start.

They are still QEing which must stop, they have to raise rates significantly which they wont do, and they have to QT aggrievedly. there is no such thing as a soft landing only how long it takes to hit bottom.
 
And the unhinged lefties here think the average working American gives one shit about Jan6? Wait until the midterm election numbers and these asshats found out just how many Hispanic farm workers who are filling their 15 year old pickups at $100/tank have voted.
 
Life is Golden said:
Yep, this is a shit show, all right. How much more damage can Brandon do to the US?
Click to expand...

It's not just Biden.
Trump raised the deficit year after year after promising to pay off the debt entirely in 8 years.
And both POTUS's are fully guilty of refusing to reel in the Fed...who is the primary culprit of this inflation mess.

Yes, Biden has ONLY, made things worse.
But blaming him entirely for a situation that was brewing for over a decade is COMPLETELY erroneous.

Fighting inflation is supposed to be the Fed's NUMBER ONE JOB.
And they have failed MISERABLY at it.

The Fed are to blame more than Trump and Biden combined.
 
Are there STILL some Bidenbots who are delusional enough to still refuse to stop calling the inflation rate 'transitory'?

If there are - they now are going to blame it ALL on Trump and Russia...I suppose.

:palm:
 
You are confusing other socialists as being Democrats (which are also socialists).

Phantasmal said:
Did Biden lock down China?
Click to expand...
No. Socialists in China locked down China.
Phantasmal said:
Can Biden force oil companies to increase production?
Click to expand...
No. Biden took their permits away and he can't force anything.
Phantasmal said:
Did Biden cause Putin to invade Russia?
Click to expand...
Largely. Biden is such a nothing that Putin has no fear of him.
Phantasmal said:
What exactly could Biden have done to alleviate these problems?
Click to expand...
Since you don't seem to understand the capability of the army, air force, marines, etc. And since you don't seem to understand how many other tools can be applied against Russia (and were by Trump), you are just discarding history.
Phantasmal said:
I’d like to hear conservative solutions to these problems, thanks.
Click to expand...

Already done. See Trump's method. It worked.
 
Phantasmal said:
Can Biden force oil companies to increase production?

Did Biden cause Putin to invade Russia? What exactly could Biden have done to alleviate these problems? I’d like to hear conservative solutions to these problems, thanks.
Click to expand...
Inflation started well before the invasion by Putin

Biden halts oil, gas leases amid legal fight on climate cost
https://apnews.com/article/climate-business-environment-and-nature-91f740cbd9f5f872fcdee911ff5f8026
delays follow a ruling by U.S. District Judge James Cain of the Western District of Louisiana, who blocked federal agencies from using an estimate known as the “social cost of carbon” to assess pollution from carbon emissions by energy production and other industrial sources. The decision blocked the Biden administration from using a higher estimate for the damage that each additional ton of greenhouse gas pollution causes society.

President Joe Biden on his first day in office restored the climate cost estimate to about $51 per ton of carbon dioxide emissions, after President Donald Trump had reduced the figure to $7 or less per ton. Trump’s estimate included only damages felt in the U.S. versus the global harm previously used by President Barack Obama.

The damage figure uses economic models to capture impacts from rising sea levels, recurring droughts and other consequences of climate change and helps shape rules for oil and gas drilling, automobiles and other industries. Using a higher cost estimate would help justify reductions in planet-warming emissions by making the benefits more likely to outweigh the expenses of complying with new rules.
 
dukkha said:
U.S. consumer prices accelerated in May at the fastest rate since 1981, as Americans grapple with a surge in the cost of gas, food, and shelter, data showed Friday.

The Bureau of Labor Statistics' May Consumer Price Index (CPI) showed a year-over-year increase of 8.6% last month, up from 8.3% in April. Economists were expecting an 8.3% increase in May, according to estimates compiled by Bloomberg.

The biggest contributors to the latest jump in inflation were shelter, gasoline, and food, according to the BLS. The energy index rose 3.9% month-on-month in May, with the gasoline index rising 4.1%. Compared to the prior year, energy prices in May were up 34.6%, the most since September 2005.

Meanwhile, the food index rose 1.2% from April to May and 10.1% over the prior year, the largest jump since March 1981.
https://finance.yahoo.com/news/may-inflation-data-june-10-2022-212834308.html
Click to expand...




Oh my



Tell us all how to instantly reverse this trend if you want to win elections
 
dukkha said:
Inflation started well before the invasion by Putin

Biden halts oil, gas leases amid legal fight on climate cost
https://apnews.com/article/climate-business-environment-and-nature-91f740cbd9f5f872fcdee911ff5f8026
delays follow a ruling by U.S. District Judge James Cain of the Western District of Louisiana, who blocked federal agencies from using an estimate known as the “social cost of carbon” to assess pollution from carbon emissions by energy production and other industrial sources. The decision blocked the Biden administration from using a higher estimate for the damage that each additional ton of greenhouse gas pollution causes society.

President Joe Biden on his first day in office restored the climate cost estimate to about $51 per ton of carbon dioxide emissions, after President Donald Trump had reduced the figure to $7 or less per ton. Trump’s estimate included only damages felt in the U.S. versus the global harm previously used by President Barack Obama.

The damage figure uses economic models to capture impacts from rising sea levels, recurring droughts and other consequences of climate change and helps shape rules for oil and gas drilling, automobiles and other industries. Using a higher cost estimate would help justify reductions in planet-warming emissions by making the benefits more likely to outweigh the expenses of complying with new rules.
Click to expand...

Yeah it was called Covid recovery


Pent up demand and lack of product due to the world being shut down during a pandemic


Give us your instant solution?
 
Celticguy said:
The administration is, s usual, wrong just as they have been all along on everything to do with the economy including the silly corporate greed which Yellen herself shot down.

THe Fed has to fix it and they have to start.

They are still QEing which must stop, they have to raise rates significantly which they wont do, and they have to QT aggrievedly. there is no such thing as a soft landing only how long it takes to hit bottom.
Click to expand...

The Fed is out of options. They can either go for a debt crash (not likely, since that is ruinous to the government), or a cash crash (not as instantly ruinous, but the faith in the dollar wanes). It's only a matter of time now.
 
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