Reading for Core CPI, which exudes volatile food and energy prices, posted a 6% increase over the same period. Previous month level. Both readings are among the biggest jumps in prices enjoyed by consumers since 1981.
Sung von Sohn, a professor of finance and economics at Loyola Marymount University, said: “Inflation is going higher and wider with a worsening outlook.” In Los Angeles. “The likelihood of a recession in the next year or so is growing. Inflation is eating up consumer purchasing power. Since consumer spending accounts for about 70% of the economy, a real reduction in consumer spending can take a big hit.”
Mark Zandi, chief economist at Moody’s Analytics, said the typical US family spent $ 460 more per month to buy the same basket of goods and services last year.
But fuel price increases are not limited to record gasoline prices. Electricity prices have risen 12% in the past 12 months, the largest annual increase since 2006. And the price of natural gas used by consumers is up 30.2%, the biggest jump since 2008.
Higher energy prices added 2 percentage points to the overall CPI.
It is not just the power to raise prices. The Labor Department said almost all of the major components that make up the index showed increased prices.
Prices to Food bought to eat at home Increase of 11.9%, the largest increase in 12-months since 1979, eggs 32.2%, milk 15.9% and poultry 16.6%.
The shelter index, which measures rents and other housing costs, posted an increase of 5.5%, its largest 12-month gain since 1991. While this may not be a big increase in second-class prices in other categories, money consumers spend on renting or buying their home, which is usually the biggest expense they make each month.
Used car prices, which have shown signs of moderating with a monthly decline in the past three months, have surged again, increasing prices by 16.1% in the past 12 months. Meanwhile, new car prices increased 12.6% over the same period. Lack of computer chips has restricted production to automakers and has led to an increase in limited inventory prices.
“Inflation has proven to be more persistent than it was widely believed a year ago, when the transitory was buzzword,” said Jim Byrd, chief investment officer at Plante Moran Financial Advisors. “Now two important questions? How far can the Fed go to reduce inflation and how far can the Fed go without pushing the economy into recession?”
When the inflation report brought new attacks on the Biden administration by Republicans, the White House sought to blame the worst of inflation on the rise in oil and gasoline prices after Russia invaded Ukraine.
“Today’s inflation report confirms what Americans already know. Putin’s price rise is hitting Americans hard,” President Joe Biden said at the Port of Los Angeles, where he paused for a regional summit. : High prices on everything from gas to groceries.
Biden tried both to acknowledge the pain Americans are experiencing, explain how they are looking to solve it, and blame others.
“I understand,” Biden said. “Inflation is a real challenge for American families.”
Last year, he criticized shipping conglomerates for singling out oil giant Exxon to raise prices for their stock repurchases and oil companies for “making more money than God”.
– CNN’s Kevin Liptak contributed to this report.