The Consumer Price Index has increased 5% over the last 12 months, the fastest inflation in prices since August 2008, according to a Department of Labor report, and core inflation has skyrocketed to its highest level since 1992.
The Consumer Price Index (CPI) increased 0.6% between April and May and economists projected that the CPI increased by 0.5% and 4.7% over the 12-month period ending in May, according to The Wall Street Journal.
Core inflation, as measured in the core personal consumption expenditures (PCE) index, rose 3.1% which is the fastest in almost 30 years. The index tracks the prices of a wide swath of goods and services to give a broader view of inflation than the CPI number typically highlighted in economic news.
Lumber, metals, groceries, and fuel prices have all seen significant price increases with no let-up in sight.
The Labor Department’s report also showed a 13.1% drop in household income setting the economy up for a dangerous mix of higher prices and fewer consumers able to afford them.