(JustPatriots.com)- The annual inflation rate in the US surged to 8.6 percent in May, the highest rate in 41 years.
According to data released last Friday by the Bureau of Labor Statistics, the consumer price index rose by one percent month-over-month with the increased prices of food, energy, and housing showing no signs of slowing down during the month of May.
The core inflation rate, which doesn’t include food or energy, climbed by 6 percent year-over-year, exceeding economists’ prediction of 5.9 percent. Core inflation rose by 0.6 percent month-over-month.
Food prices soared by 10.1 percent while energy prices increased by 34.6 percent.
Fuel oil increased by 106.7 percent year-over-year while gasoline rose 48.7 percent and electricity jumped by 12 percent.
Consumers are paying more at the grocery store as meat prices have all surged. The price of eggs increased by 32.2 percent and milk was up by 15.9 percent. Fruits and vegetables also increased by 8.2 percent while coffee rose by 15.3 percent.
The release of May’s inflation numbers sent a ripple across Wall Street last week as the Down Jones Industrial Average dropped by nearly 700 points. The Nasdaq Composite fell over 3 percent while the S&P 500 dropped by 2.7 percent.
Friday’s inflation report sent US stocks into a bear market on Monday with investors fearful that aggressive interest rate hikes from the Federal Reserve could tip the economy into a recession. The Nasdaq Composite fell 4.7 percent by the close of trading while the S&P 500 dropped 3.9 percent. The Dow Jones Industrial Average fell another 2.79 percent dropping by 876.05 points.
The Federal Reserve’s decision on interest rates is expected this week.
Meanwhile, over the weekend, the national average for a gallon of gas tipped over $5 for the first time since AAA began tracking the trend in 2000.
The White House’s shiny, happy talk about the state of the US economy clearly isn’t working.
The latest Quinnipiac poll placed Joe Biden’s approval at a dismal 30 percent. Rasmussen’s daily presidential approval tracking showed Biden with the highest disapproval on record with 60 percent of respondents disapproving of the president, placing Biden 22 points underwater.
