Americans Witnessed another round of rising Inflation in May
Inflation rose 8.6% in May, highest since 1981...
In the month of May, Americans had no break from inflation as prices were reported to have risen 8.6% from a year ago. According to the Bureau of Labor Statistics, this is the fastest increase since December 1981.
The Consumer Price Index (CPI) increased even more than the Dow’s estimate of 8.3%. That figure DOES NOT include food and energy prices. So, the core CPI was up 6% - still higher than the 5.9% estimates.
Headline CPI came in higher by 1% with the core rising by 0.6% compared with estimates of 0.7% and 0.5% respectively.
As many know, all forms of energy are running wild in prices as well. Energy prices gained 3.9% from last month and the annual gain is now totaled out to 34.6%. Oil also witnessed a monthly gain of 16.9% and the year has now seen a total increase f 106.7%.
As Americans are being heavily affected by the gas pump, the store shelves are no better. Food costs jumped 1.2% last month and the yearly gain is now at 10.1%. The price jump also means that workers are taking another pay cut. Real wages fell 0.6% (when accounting for inflation).
“It’s hard to look at May’s inflation data and not be disappointed. We’re just not yet seeing any signs that we’re in the clear.”
John Leer, Morning Consult’s chief economist, said.
The numbers from yesterday tore down all hopes that inflation has peaked and the fears of the economy reaching a recession have increased.
“Obviously, nothing is good in this report. There is nothing in there that’s going to give the Fed any cheer. ... I struggle to see how the Fed can back off.”
Julian Brigden, president of MI2 Partners, said.