January 1, Inflation Hits New 40-Year High — Again

Inflation continued to rise last month, setting a new 40-year high as Americans endure skyrocketing prices.

The Labor Department said consumer prices rose 8.6% from 12 months earlier last month — faster than April’s staggering 8.3% year-over-year increase.

The new inflation data shows the biggest yearly increase since December 1981.

Prices increased by 1% from April to May, with food, energy, rent, airline tickets, and vehicles contributing to the uptick.

The Associated Press reported that the Labor Department’s new report “underscored the worry that inflation is broadening well beyond the spike in energy prices stemming from clogged supply chains and Russia’s invasion of Ukraine.”

Ethan Harris, Bank of America’s head of global economic research, said: “Virtually every sector has higher-than-normal inflation.”

“It’s made its way into every nook and cranny of the economy. That’s the thing that makes it concerning, because it means it’s likely to persist.”