Inflation in the United States reached 8.6% in May, hitting a 40-year high as food and gas prices soared.

Inflation in the United States reached 8.6% in May, the highest year-on-year increase since 1981. This is mainly due to the continued rise in the cost of basic necessities, according to new federal government reports.

With the overall surge in consumer goods and services prices, inflation will return to its 40-year high after a temporary fall in April.

According to the Consumer Price Index report released by the US Department of Labor on Friday, price increases were widespread, with shelter, gasoline and food indexes being the largest contributors. After falling in April, the energy index rose 3.9% in a month, the gasoline index rose 4.1%, and the other key component indexes rose. The food index in May rose 1.2% and the home food index rose 1.4%.

we Gas price Set a record high on Friday AAA The national average price for a gallon of regulars is currently $ 4.99. Utah is also seeing its own best recordCurrently, residents of the entire state are paying an average of $ 5.01 per gallon.

Mountain West, including Utah, continued to have some of the country’s highest regional inflation, with average prices for goods and services rising 9.4% in May, up from a 9.8% rise in April.

U.S. consumers are now paying for food, an increase of 11.9% compared to last year, gas, an increase of 48.7% compared to 2021, and shelter costs, an increase of 5.5% since May 2021. I am.

Prices for new and used cars also continue to rise by 12.6% and 16.1%, respectively.

Rapid inflation in the United States puts serious pressure on families, requiring them to pay more for food, gas and rent, reducing their ability to buy discretionary items, from haircuts to electronics. Low-income earners, blacks and Hispanic Americans, on average, struggle because most of their income is consumed by necessities.

Economists expect inflation to ease this year, though not so much. Some analysts predict that the inflation gauge (consumer price index) reported by the government on Friday could fall below 7% by the end of the year. The consumer price index in March reached 8.5% year-on-year, the highest since 1982.

High inflation has also pushed the Federal Reserve to what is likely to be the fastest series of rate hikes in 30 years. By aggressively raising borrowing costs, the Fed wants to cool spending and growth enough to curb inflation without a recession. For central banks, it will be a difficult balancing act.

Studies show that Americans see high inflation as follows: The biggest problem in the countryAnd most Oppose President Joe Biden’s treatment of the economy.. Parliamentary Republicans are hitting Democrats on this issue for the midterm elections this fall.

According to a Bank of America Institute study that uses anonymous data from millions of customers’ credit and debit card accounts, spending on gas consumes most of the consumer’s budget and buys other products. Overwhelming ability to do.

In this week’s report, the institute said that for low-income households (defined as households with incomes less than $ 50,000), spending on gas was the total spending on credit and debit cards in the last week of May. He said it reached almost 10%. This has risen from about 7.5% in February and has surged in such a short period of time.

contribution: Associated Press

On Thursday, June 9, 2022, you will see the price of diesel in front of the Smiths Express gas station in Salt Lake City. Currently, the average gasoline price is over $ 5 per gallon.

Christine Murphy, Dezalet News

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https://www./utah/2022/6/10/23162081/u-s-inflation-back-to-40-year-high-as-food-and-energy-prices-continue-to-soar-interest-rates Inflation in the United States reached 8.6% in May, hitting a 40-year high as food and gas prices soared.

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