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Inflation Hits New 40-Year High as Gas, Grocery and Rent Prices Soar

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Consumer prices spiked in May, dashing hopes after  moderated somewhat in April.

Instead, the May ’ latest Consumer Price Index (CPI) showed a year-over-year increase of 8.6%, the highest since December 1981.

CNBC’s Rick Santelli, seen by many as the father of the Tea Party, was unsparing in his criticism.

WATCH:

Economists were expecting an 8.3% gain.

Skyrocketing gas, grocery and rent prices drove the disappointing numbers. CNBC noted the cost of fuel oil is up over 106% in the past 12 months.

The latest CPI report also showed real wages declined 0.6% between April and May, equivalent to a 3% annual drop.

CNBC further reports:

Shelter costs, which account for about a one-third weighting on the CPI, rose 0.6% for the month, the fastest one-month gain since March 2004. The 5.5% 12-month gain is the most since February 1991.

Finally, food costs climbed another 1.2% in May, bringing the year-over-year gain to 10.1%.

Those escalating prices meant workers took another pay cut during the month. Real wages when accounting for inflation fell 0.6% in April, even though average hourly earnings rose 0.3%. On a 12-month basis, real average hourly earnings were down 3%.

Markets reacted negatively to the report, with stock futures indicating a sharply lower open on Wall Street and government bond yields rising.

This article originally appeared in American Liberty News. The opinions expressed in this article are those of the author and do not necessarily reflect the positions of The Republican Standard. Republished with permission.

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