Inflation continues to rise, gas prices up nearly 50% since last year
According to the Consumer Price Index (CPI), the average price of consumer goods has increased 8.6% year-over-year. This represents the highest 12-month rise since December 1981.
After a 0.3% increase in April, inflation rose 1% month-over-month in May. The main reason for this was an increase in food and fuel prices.
Inflation core, which is a measure that does not include food or energy prices and can be volatile, rose 0.6% to May. This was the same increase as April.
It means that prices for everything from food to rent will rise further, which is putting Americans in a worse financial position. According to the Labor Department, here’s how prices rose for some household items and services over the last year.
- Gas: 48.7%
- Cars and trucks for rent: 16.1%
- All new vehicles: 12.6%
- Electricity: 12%
- At home, food: 11.9%
- Take-out food: 7.4%
- Shelter: 5.5%
- Apparel: 5%
The gas prices are rising at a shocking 48.7% and 4.1% respectively since last year.
For context, it costs an average of $4.99 per gallon in the United States to fill a full tank with gas. according to AAA.
Some residents of certain states feel the heat even more. According to AAA, Illinois’ average cost of a gallon is $5.56. It’s $5.62 in Nevada. In California, the average price of gas is $6.42 per gallon — but in Mendocino, at least one gas station is charging nearly $10 per gallon.
Americans who rely on cars for transportation to get to work are still concerned about gas prices. Some may also want to drive their cars more as the summer driving season kicks in.
Inflation may be rising, which could fuel fears of a recession. This is likely to happen: Chief financial officers from all the major banks are expected to be there. participated in the latest CNBC CFO Council surveyThe second quarter was characterized by a recession.
It is unlikely to happen before next year. CNBC polled 68% of CFOs and found that 68% believed that there would be a recession in the first quarter 2023.
Gus Faucher is a chief economist for PNC Financial Services Group. He stated, “There’s very little chance of recession this year.” told CNBC Make It in May.
Faucher however stated, “It gets dicier between 2023 and 2024.”