September 30, 2022
Inflation reaches new 40-year high in May with no sign of slowing down

The Consumer Price Index (CPI), a measure of inflation, rose 8.6% annually in May, according to the latest report from the Bureau of Labor Statistics (BLS). This comes after inflation had eased slightly in April, falling to 8.3% annually. On a monthly basis, inflation increased 1% from April to May. 

The increase was driven by a surge in prices for shelter, gasoline and food, according to the report. The energy index increased 3.9% for the month, while the gasoline index rose 4.1% and the food index increased 1.2%. 

“Inflation surprised to the upside in May, placing more pressure on policymakers,” Curt Long, National Association of Federally Insured Credit Unions’ (NAFCU) chief economist and vice president of research, said. “Energy was a key contributor, both as a consumer good and as an input in other areas that saw strong growth, like airfares. 

“But price gains were strong across the board,” Long continued, saying the banking industry should “be prepared for more hawkish talk from Fed officials and the related market impacts.”

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