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Inflation hits 40-year high, with energy prices being the highest contributing factor

The numbers are the latest blow to President Joe Biden

Eric Garcia
Wednesday 13 July 2022 14:50 BST
(Getty Images)
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Inflation has hit a 40-year high as prices increased 9.1 per cent year over year, according to the latest numbers from the US Bureau of Labor Statistics.

The Consumer Price Index for All Urban Consumers jumped 1.3 per cent last month, with gasoline, shelter and food being the largest contributors to inflation.

The numbers are a devastating blow for President Joe Biden as many voters continue to express frustration about rising prices. A recent New York Times/Siena College poll found that 15 per cent of voters think inflation is the most important problem facing the country while 20 per cent say the economy.

While the price of gasoline has continued to drop in recent days, the energy index rose 7.5 per cent for the month of June and contributed nearly half of the all items increase. The gasoline index alone rose 11.2 per cent in the past month and in the last 12 months, it increased 59.9 per cent, the largest increase since March 1980. The monthly index for natural gas rose 8.2 per cent that month, the largest monthly increase since October 2005.

The price of food also jumped 1 per cent in the past month, which was the sixth consecutive month food increased at least 1.0 per cent for that index. The food at home index rose 12.2 per cent in the past year, the largest increase since April 1979, while the food away from home index increased 7.7 per cent in the past year, the largest shift since November 1981.

The shelter index rose 0.6 per cent in June, while the rent index rose by 0.8 per cent, the highest monthly increase since April 1986. In total, the shelter index rose 5.6 per cent in the past year, the largest increase since February 1991.

The numbers also come as Senate Democrats are attempting to negotiate a pared down version of their proposed Build Back Better proposal with Senator Joe Manchin, the conservative Democrat from West Virginia, who has raised numerous concerns about inflation.

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