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Inflation rises at fastest pace since 1981, pushed up by record gas prices

By Chris Isidore | CNN Business

The pain of higher prices continues for US consumers.

Record gas prices drove inflation to 8.6% for the 12 months ending in May, higher than the pace in April, according to the latest Consumer Price Index, the government’s basic inflation measure.

The reading for core CPI, which strips out volatile food and energy prices, posted a 6% increase over the same period, higher than the previous month’s level. Both readings are among the biggest jumps in prices experienced by consumers since 1981.

Energy prices overall rose 34.6% compared to a year ago, driven by a nearly 50% jump in gas prices over the last year, with a 4.5% increase in just the last month. But other forms of energy were also much higher. The cost of electricity rose 12%.

And it’s not just energy driving prices higher. Food prices rose 10.1%, the first double-digit increase since 1981. The shelter index, which measures rents and other housing costs, posted a 5.5% increase, the biggest 12-month gain since 1991.

The high pace of inflation means the Federal Reserve is all but certain to continue to aggressively raise interest rates when it meets next week.

The-CNN-Wire™ & © 2022 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

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