Inflation Hits Fresh 40-Year High in May 2022 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.

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

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...
Summer app

Student Loan Benefit FinTech Summer Raises $6 Million

For years, student debt has been one of the most talked about financial topics. What's more, while the debt itself has become a major part of many Americans' lives, discussion of student loans has become political due to efforts to forgive certain loan repayments. However, while we wait for resolution on that front, a FinTech that brings student debt benefit solutions to employers and consumers has raised a new round...
H-E-B and Central Market  credit cards

Imprint Launches Credit Cards from H-E-B and Central Market 

The FinTech Imprint is partnering with the popular Texas-based grocery chain H-E-B for a pair of new rewards credit cards. This week saw the launch of the H-E-B Visa Signature Credit Card as well as the Central Market Visa Signature Credit Card. With these two (nearly identical) options, customers will be able to earn rewards on groceries and beyond. First, both versions of the card earn up to 5% back on select...
Melissa Urban holding a Ness card

Health and Wellness Rewards Card Ness Partners with Whole30

In recent years, several unique rewards cards have come to market. These include offerings from FinTech startups as well as brands looking to do something special for their loyal fans. On that note, a recently-announced rewards credit card offering is now working with a popular brand to introduce new benefits for customers. This week, the Ness Card (which is issued by The Bank of Missouri) unveiled a new partnership with...
Choice Privileges Select Card

Choice Hotels, Wells Fargo Debut Choice Privileges Select Card

With spring well underway and the summer travel season now just around the corner, Choice Hotels and Wells Fargo have unveiled their latest co-branded credit card offering. Today, the two companies announced the Choice Privileges Select Mastercard. Carrying an annual fee of $95, this card will serve as the premium option in the hotel brand's new lineup. Looking at the Choice Privileges Select, it offers a mix of rewards categories....