According to the latest report from the US Bureau of Labor Statistics, the national Consumer Price Index, a general metric by which inflation of consumer goods is measured, rose to record highs this past May. Specifically, the CPI rose by 8.6%, a high not seen since December of 1981.
The report, while upsetting, is not altogether surprising. It’s been no secret that prices are on the rise in the United States due to a combination of ongoing supply chain issues, oil problems caused by the Russian invasion of Ukraine, and stagnating wages throughout the entire job market.
“It’s hard to look at May’s inflation data and not be disappointed,” said Morning Consult’s chief economist, John Leer, in a statement. “We’re just not yet seeing any signs that we’re in the clear.”
U.S. inflation reached a new four-decade high of 8.6% in May https://t.co/iT5EkVYITo
— The Wall Street Journal (@WSJ) June 10, 2022
The Federal Reserve is currently in the midst of an effort to get ballooning prices under control by raising interest rates. With the release of this report, these rate hikes have become a much realer possibility, not to mention a potentially heavier one.
“Obviously, nothing is good in this report,” said MI2 Partners president Julian Brigden. “There is nothing in there that’s going to give the Fed any cheer. … I struggle to see how the Fed can back off.”