Inflation Data

June 13, 2022
Dollar bills

We’re just not yet seeing any signs that we’re in the clear.

Morning Consult’s chief economist, John Leer, on new data showing the fastest inflation increase in more than 4 decades.
  • Why It Matters: High inflation means your money buys you less. "Friday’s numbers dented hopes that inflation may have peaked and adds to fears that the U.S. economy is nearing a recession."
  • The data released Friday shows "broad-based" inflation — rising costs in almost every category, not only month-to-month also but year-over-year. The leaders in rising costs? "Shelter, gasoline, and food …"
  • Some believe we may continue to see inflation climb. To counter inflation, the U.S. Central Bank (aka the Federal Reserve) will raise interest rates, making it more expensive to borrow; this is a way of attempting to cool demand, which *hopefully* may lead to a drop in inflation.
  • BTW: The inflation data released Friday was compounded by a separate report that showed wages fell — another sign of a struggling labor market/economy, and why workers can't keep up with rising prices.

Inflation rose 8.6% in May, highest since 1981

by Jenna Lee,