Inflation jumps to 9.1% in June, real profits down 3.6%
WASHINGTON DC, July 13, 2022 – Today, the US Bureau of Labor Statistics announced that consumer inflation hit a 41-year high of 9.1% in June, from 8.6% in May. The consumer price index for all urban consumers (CPI-U) increased by 1% from May to June.
Americans haven’t seen consumer inflation this high since November 1981. The index for all items less food and energy rose 5.9%, the largest 12-month change since the period ended. ending in April 1980. The energy index has risen 41.6% over the past year, the highest since April 1980.
The home food index rose 1.0% in June from May, the sixth consecutive increase of at least 1.0% for this index. Although the overall food index rose 10.4%, the largest 12-month increase since the period ending in February 1981, the home food index rose 12.2%, the most sharp increase over 12 months since the period ending in April 1979.
All six major grocery store food group indices rose over the period, with five of the six increasing by more than 10%. The index for other foods in the home increased the most, increasing by 14.4%, with the index for butter and margarine increasing by 26.3%. The other groups saw increases ranging from 8.1% (fruits and vegetables) to 13.8% (cereals and baked goods).
The energy index has risen 41.6% over the past 12 months. The gasoline index rose 59.9% over the period, the largest 12-month increase in this index since March 1980. The electricity index rose 13.7%, the largest 12-month increase since the period ending April 2006. The natural gas index rose 38.4% over the past 12 months, the largest such increase since the period ending October 2005.
Increases in the gasoline, housing and food indexes rounded out the factors that contributed the most to the increase. The indexes for motor vehicle repair, clothing, furniture, and home and leisure operation also rose in June. Among the few major component indices that declined in June were out-of-home accommodation and air fares.
The March 2022 CPI-W (used in the Social Security cost of living adjustment [COLA] calculations, hit a four-decade high of 9.8.
The July 2022 Consumer Price Index is scheduled for release on Wednesday, August 10, 2022.
Actual Earnings – June 2022
Real average hourly wages for all employees fell 1% from May to June, seasonally adjusted, the US Bureau of Labor Statistics reported. This result stems from a 0.3% increase in average hourly earnings combined with a 1.3% increase in the consumer price index for all urban consumers (CPI-U).
Real average hourly earnings decreased by 3.6%, seasonally adjusted, from June 2021 to June 2022.
Here’s the June wage growth vs. inflation chart based on BLS data. Inflation soared, wage growth fell to a huge negative gap. The number on your paycheck has grown. It’s just worth a lot less. Biden’s Economic Advisor – ‘This is about the future of the liberal world order.’ Yes it is. pic.twitter.com/MoBbS4n0rE
—Andy Puzder (@AndyPuzder) July 13, 2022
Real average hourly earnings of production and non-managerial employees fell 1.1% from May to June, after seasonal adjustment. This result stems from a 0.5% increase in average hourly earnings combined with a 1.5% increase in the consumer price index for urban wage and office workers (CPI-W).
From June 2021 to June 2022, real average hourly earnings of production and non-supervisory employees fell 3.1%, seasonally adjusted.
Latest Seattle Area Economic Summary
The 12-month percent change in the May 2022 Consumer Price Index for the Seattle-Tacoma-Bellevue area is 9.1% for all items, compared to 8.3% for all other U.S. cities . Food increased by 11.4%. Although energy grew by 24.1% in the region, this figure is significantly lower than the 30.3% for the rest of US cities during the same period.