“The rate of increase in the consumer price index last month was the highest since December 1981,” announces on Wednesday 13 July the Wall Street Journal. In June, this stood at 9.1%, which means that a year ago, in June 2021, prices in the United States were almost 10% lower than today. At least if we rely on the basket of goods that is taken into consideration by the US Department of Labor, which performs this calculation.
As indicated by the Washington Post, ce “amazing leap forward” was fueled by the price of energy, “which increased by 7.5% compared to May 2022, and by 41.6% in one year”. An indirect consequence of the invasion of Ukraine by Russia, which upset the world energy market.
Nevertheless, the American daily specifies further on, few products have been spared by the rise in prices, starting with food. “The food index rose 1% in June, and 10.4% from a year ago, the biggest annual increase since February 1981. As for the price of chicken, it rose 19% in the past year. This is the largest increase ever recorded.”
To counter this trend, the US Federal Reserve (FED) could consider raising its key rates even further (action already undertaken in recent months). A strategy to block inflation which, so far, has not yielded the expected results, and which, warns the Washington Postmay indirectly cause job cuts.