Inflation Hits Fresh 40-Year High in May 2022
May US CPI graph

Inflation Hits Fresh 40-Year High in May 2022

As many Americans are surely aware, the price of goods in the United States has been on the rise. This issue has been blamed on many factors, including supply chain issues, the war in Ukraine, labor shortages, and more. Regardless of the reasons behind it, the upward trajectory has not stopped. In fact, the latest report from the Bureau of Labor Statistics shows inflation hitting a new four-decade high.

For the 12 months ending in May 2022, the Consumer Price Index rose 8.6%. As CNN Money notes, this marks the largest year-over-year increase since 1981. During the month itself, prices rose 1% after a relatively modest 0.3% increase in April.

The overall spike was led by commodities, such as gasoline. Last month, gas prices were 48.7% higher than they were this time last year. Furthermore, prices rose 4.1% according to the Index. Elsewhere, food prices have also outpaced the overall rate, growing 10.1% over the past 12 months. More specifically, “food at home” prices have grown 11.9%, including a 1.4% increase in May. Notably, these figures might not even include cases of so-called “shrinkflation” where companies choose to lower the portion sizes of their product rather than raise prices.

Following the BLS’s report this morning, the stock market reacted negatively. For a time, the Dow Jones Industrial Average had fallen as much as 800 points during the day while the S&P 500 is currently down more than 2.5%. The results also increase fears about the United States entering a recession.

As Loyola Marymount University economics professor and SS Economics president Sung Won Sohn told CNN, “The probability of a recession in the next year or so is rising. Inflation is eating away at consumers’ purchasing power.” Sohn added, “Since consumer spending accounts for about 70% of the economy, a real decrease in consumer spending would deal a big blow to the economy.”

While it comes as no surprise that inflation continues to be a problem, May’s report is seemingly worse than expected. Furthermore, unlike in some recent months, May saw prices rising across all CPI categories, with Aditya Bhave and Meghan Swiber of Bank of America Securities noting to Axios, “Stepping back, we are struck by the fact that there were almost no pockets of weakness in this report.” In turn, expect inflation to not only be a major economic issue in the coming months but also a political one as the midterm elections near.

Leave a Reply

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Brim logo

Brim Financial Raises $85 Million as It Eyes Global Expansion

Toronto-based FinTech infrastructure startup Brim Financial has announced a new funding round. About the round: Brim has revealed an $85 million round. The Series C was led by EDC Investments while new investor Vistara Growth and returning investors White Owl Group, Epic Ventures, and Zions Bank also participated. To date, the company has now raised $110 million including a Series B in 2021. According to Brim, the latest funding will...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories:, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...
Rent Day

Bilt Announces Home Collection Deal for May 2024 Rent Day

For May's Rent Day, Bilt is offering a deal that will allow members to decrease their rent bill while also adding to their home decor. About the Home Collection offer: Bilt has crafted a unique Rent Day offer for May 2024. Through the 1st, when Bilt members redeem their points toward rent payments, they'll receive the same number of points to be used toward Bilt Home Collection items. To take...