The updated Consumer Price Index (CPI) was announced about an hour ago and the markets are rightly showing concern. The official CPI rose to 8.6% in May, higher than the estimate of 8.3% by the Dow Jones. According to the Bureau of Labor Statistics, this represents the fastest increase since December 1981.
The markets are rightly showing signs of concern this morning with the Dow sinking 500 points. Tech and retail stocks will likely be hardest hit throughout the trading day.
The news this morning should not be a surprise to anyone. We’ve seen the price of gas double over the last year, with gas prices in my area well into the $5 range. According to the GasBuddy app, the lowest prices this morning in my area is $5.48 and $5.49 at Sam’s Club and Costco, respectively.
Price increases at grocery stores have also been noticeable on most items. If you haven’t noticed a price increase on the items you buy it is likely that packages are shrinking to help keep the shock of price increases low.
The Federal Reserve has been slowly increasing interest rates over the last few months to help ease the rise in inflation.
What are you and your family doing to help pay for rising gas prices and to save on everyday food purchases? Share your comments with my readers below.