Inflation reports on Friday were a triple pain for consumers, with significant price increases in food, housing, energy (the sector that accounts for the majority of household costs) and almost every other category.
However, some of the sharpest increases were in the home food sector, where food costs surged almost 12% in the year to May. This is the largest year-on-year increase since 1979.
The categories that are experiencing the greatest price increases are usually staple foods such as dairy products, eggs and meat.
According to the latest Consumer Price Index, egg prices rose 32.2% from May 2021 to May 2022. Meat, chicken and fish increased 14.2% year-on-year, and dairy products increased 11.8%.
“Food and fuel are driving inflation and causing problems for American homes,” RSM Chief Economist Joe Brusuelas said in a Friday memo.
Jeffrey Roach, Chief Economist at LPL Financial, said:
“Inflation and uncertainty have a significant impact on sentiment, so we expect a slowdown in consumer spending,” he said in a statement.
The Federal Reserve, with its dual mission of price stability and maintaining maximum employment, is raising interest rates as a way to mitigate rising inflation and cool the economy, but it’s far from an overnight process. is.
Inflation reports brought a new attack on the Biden administration from the Republicans, but the White House sought to hold the worst responsibility for inflation in rising oil and gasoline prices after Russia invaded Ukraine.
“Today’s inflation reports confirm that Americans already know. Putin’s price increases have hit Americans hard,” President Joe Biden said at the Port of Los Angeles. : All high prices from gas to groceries.
Biden acknowledged the pain that Americans were feeling, explained how he was trying to resolve it, and tried to blame others.
“OK,” Biden said. “Inflation is a real challenge for American families.”
Last year, he elected oil giant Exxon for making “more money than God,” and accused the oil company of shipping conglomerates and stock repurchases to raise prices.
–CNN’s Kevin Liptak contributed to this report.
Source: www.cnn.com
