Out of Control U.S. Inflation Plagues Working Americans, the Biden Administration, and the Fed
Posted on 06/10/2022
According to data from the U.S. Department of Labor, U.S. inflation accelerated, with consumer prices rising 8.6% in the year through May 2022, a rapid pace that is making it increasingly difficult for consumers to afford everyday purchases. This is the fastest pace of inflation since December 1981. The consumer price index (CPI) measures what consumers pay for goods and services. Energy prices were a major source of U.S. inflation in May 2022. The price of gasoline rose 4.1% in May 2022 over the previous month, bringing the increase from a year ago to 48.7%. Shelter (rent), food, and gas were the largest contributors. Grocery prices rose 11.9% annually, the most since 1979. Record gasoline prices have lowered U.S consumer wallet spending.
The out-of-control inflation, which was touted publicly as transitory by Fed Chairman Jay Powell and his cohort for months, is pushing the Federal Reserve to extend an aggressive series of interest-rate hikes and adds to political problems for the White House and Democrats.
Keywords: Federal Reserve System.