Inflation spiked 5.4% year-over-year in June, the U.S. Bureau of Labor Statistics revealed in its latest “Consumer Price Index Summary” on Tuesday. This means that families will begin feeling a pinch in their wallet, if they’re not already, as the cost of living continues to increase significantly.
According to BLS, “this was the largest 12-month increase since a 5.4-percent increase for the period ending August 2008.”
CNBC reports that the 5.4% jump was higher than expected, as economists “surveyed by Dow Jones had been expecting a 5% gain.”
The Consumer Price Index increased 0.9% in June (month-over-month), following a 0.6% increase in May.
Photo from The Wall Street Journal
For families, especially those who are struggling to make ends meet, the amount of inflation is immensely important. However, equally important is which products are driving the increase.
According to the BLS report, the following areas drove the inflation spike:
- The cost of food increased 2.4% year-over-year.
- Energy prices skyrocketed 24.5%.
- Gasoline shot up 45.1%.
- The price of new vehicles increased 5.3%.
- The price for used cars and trucks leapt 45.2% higher.
- Apparel increased 4.9%.
- Transportation services increased 10.4%.
According to BLS, the price increases for used cars and trucks “accounted for more than one-third of the seasonally adjusted all items increase.”
“The spike in inflation still looks to be primarily Covid-related and temporary as outliers continue to drive much of the upward push in prices,” Nationwide senior economist Ben Ayers told MarketWatch. “But the effects of the recent jump could linger for consumers for some time with above-average costs extending into 2022.”
Only time will tell whether the inflation our economy is experiencing will “wane” as many believe, or whether it is here to stay for the foreseeable future.
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