Consumer prices rose another 1.3% in June, contributing to a 9.1% spike over the past 12 months. It is the largest spike in 41 years.
The Bureau of Labor Statistics released the Consumer Price Index for All Urban Consumers (CPI-U) Wednesday, which showed June’s rise. In May, prices rose 1%.
“The increase was broad-based, with the indexes for gasoline, shelter, and food being the largest contributors,” BLS said. “The energy index rose 7.5 percent over the month and contributed nearly half of the all items increase, with the gasoline index rising 11.2 percent and the other major component indexes also rising. The food index rose 1.0 percent in June, as did the food at home index."
Gas prices hit record highs in June, topping an average price of $5 per gallon for regular gas before dipping down to its current average of $4.63 per gallon, according to AAA. Diesel gas also hit a record high in June, which experts say leads to an increase in costs for all kinds of products as the raw goods and finished products are shipped around the world.
“The index for all items less food and energy rose 0.7 percent in June, after increasing 0.6 percent in the preceding two months,” BLS said. “While almost all major component indexes increased over the month, the largest contributors were the indexes for shelter, used cars and trucks, medical care, motor vehicle insurance, and new vehicles. The indexes for motor vehicle repair, apparel, household furnishings and operations, and recreation also increased in June. Among the few major component indexes to decline in June were lodging away from home and airline fares.”
This latest data showed the most significant increase in four decades.
“The all items index increased 9.1 percent for the 12 months ending June, the largest 12-month increase since the period ending November 1981,” BLS said. “The all items less food and energy index rose 5.9 percent over the last 12 months. The energy index rose 41.6 percent over the last year, the largest 12-month increase since the period ending April 1980. The food index increased 10.4 percent for the 12-months ending June, the largest 12-month increase since the period ending February 1981.”
Food prices have been a major pain point for Americans as those prices have steadily risen in recent months.
“The food at home index rose 12.2 percent over the last 12 months, the largest 12-month increase since the period ending April 1979,” BLS said. “All six major grocery store food group indexes increased over the span, with five of the six rising more than 10 percent. The index for other food at home increased the most, rising 14.4 percent, with the index for butter and margarine increasing 26.3 percent. The remaining groups saw increases ranging from 8.1 percent (fruits and vegetables) to 13.8 percent (cereals and bakery products). The index for food away from home rose 7.7 percent over the last year, the largest 12-month change since the period ending November 1981. The index for full service meals rose 8.9 percent over the last 12 months, and the index for limited service meals rose 7.4 percent over the last year.”