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Consumer Price Index Hits 40 Year High of 8.6%
Summary: According to the Bureau of Labor Statistics, inflation surged in May, with prices climbing 8.6% from a year ago, the most significant increase since December 1981. The Consumer Price Index report, released by the U.S. Department of Labor on Friday, found the price increases were over various sectors, with the indexes for shelter, gasoline, and ...
According to the Bureau of Labor Statistics, inflation surged in May, with prices climbing 8.6% from a year ago, the most significant increase since December 1981. The Consumer Price Index report, released by the U.S. Department of Labor on Friday, found the price increases were over various sectors, with the indexes for shelter, gasoline, and food being the largest contributors.
Overall, the rise is higher than economists’ expectations, as they expected an increase of 8.3% annualized in May. The energy index rose 3.9% month-on-month in May, with the gasoline index increasing 4.1%. Meanwhile, the food index rose 1.2% from April to May and 10.1% over the prior year, the largest jump since March 1981.
The shelter index, which measures rents and other housing costs, posted a 5.5% increase, its biggest 12-month gain since 1991. Used car prices, which had shown signs of moderating with monthly declines over the last three months, rose again, lifting prices by 16.1% during the previous 12 months. Meanwhile, new car prices are up 12.6% over the same period than 10%. In the last year, airfares are up 37.8%, and fares in May are 21.7%, the Bureau of Labor Statics report continued.
As the U.S. releases its CPI data, rising gasoline prices are driving record levels of inflation. According to the same report, American consumers continue to feel the burden of soaring inflation levels, with the Consumer Price Index remaining at 8.6%, its highest level since 1981, thanks to rising costs for food, rent, and healthcare.
Bitcoin, a long-time safe haven for investors looking to escape the burden of inflation, continues to trade sideways, even given this horrific news, according to the Bitpush terminal. Long-term inflation like this still creates a bullish outlook for Bitcoin, which has a limited supply of 21,000,000 tokens. In the meantime, the Bitcoin Fear and Greed Index still sits in extreme fear, at 13 points on a 100-point scale.
Author: Garrett Meifert
