aja8888
Moderator Emeritus
May just came in at 8.6% and here is a nice and tidy recap of all the measured categories with charts.
https://wolfstreet.com/2022/06/10/f...l-spike-dollars-purchasing-power-goes-whoosh/
Raging inflation. The costs of services continued to spike in May, which has been the thing to watch for months because it’s where consumers spend most of their money, and it’s unrelated to “transitory” spikes in commodities. This is where inflation is getting entrenched and will be hard and painful to dislodge, and it’s now front and center. Costs of gasoline and natural gas blew out; the cost of food spiked by over 10%, while inflation in used vehicles resumed their spike, after three months of declines, and new vehicle prices continued to surge.
I said a few days ago, while observing the reinvigorated spike in gasoline and diesel prices, “Inflation not in the mood of peaking yet,” and that’s what we’re seeing, but for reasons beyond gasoline.
The headline Consumer Price Index (CPI-U), released today by the Bureau of Labor Statistics, spiked on a month-to-month basis by 1.0% in May, the worst red-hot month-to-month spike in this entire red-hot inflation cycle, with no sign of peaking. Year-over-year, CPI spiked by 8.6%, the worst since 1981. And the Fed is going to have a field day with its rate hikes:
https://wolfstreet.com/2022/06/10/f...l-spike-dollars-purchasing-power-goes-whoosh/