{"id":1510198,"date":"2022-06-10T09:04:50","date_gmt":"2022-06-10T13:04:50","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1510198"},"modified":"2022-06-10T09:13:19","modified_gmt":"2022-06-10T13:13:19","slug":"inflation-reaches-8-6-setting-new-four-decade-high","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-reaches-8-6-setting-new-four-decade-high\/","title":{"rendered":"Inflation Reaches 8.6%, Setting New Four-Decade High"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Finflation-reaches-8-6-setting-new-four-decade-high%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1510198&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The Consumer Price Index (CPI) rose 8.6% between May 2021 and May 2022, meaning that <a href=\"https:\/\/www.dailywire.com\/topic\/inflation\">inflation<\/a> surpassed <a href=\"https:\/\/www.dailywire.com\/topic\/economy\">record highs<\/a>, a Friday morning report from the <a href=\"https:\/\/www.bls.gov\/news.release\/cpi.nr0.htm\">U.S. Bureau of Labor Statistics<\/a> revealed.<\/p>\n<p>The new figure surpassed the Dow Jones estimate of 8.3% year-over-year inflation \u2014 the same level seen in April 2022, according to <a href=\"https:\/\/www.cnbc.com\/2022\/06\/09\/may-consumer-inflation-expected-fiery-hot-as-gas-food-and-rent-rose.html#:~:text=The%20CPI%20report%20is%20released,ET%20Friday.\">CNBC<\/a>.<\/p>\n<p>Inflation refers to the <a href=\"https:\/\/www.dailywire.com\/news\/inflation-is-making-you-poorer-heres-what-you-can-do-about-it\">percent change in the price level<\/a> over a given period of time. The CPI, for example, tracks a hypothetical basket of goods and services that represents typical spending for an American household. A similar metric \u2014 Producer Price Index (PPI) \u2014 tracks price levels for businesses.<\/p>\n<p>Though unemployment <a href=\"https:\/\/www.dailywire.com\/news\/new-jobless-claims-hit-highest-rate-since-january\">remains low<\/a> in the United States, inflation has led to a <a href=\"https:\/\/www.bls.gov\/news.release\/realer.nr0.htm#:~:text=From%20April%202021%20to%20April%202022%2C%20real%20average%20hourly%20earnings,weekly%20earnings%20over%20this%20period.\">drop<\/a> in real average hourly earnings. Even as wages nominally grew between April 2021 and April 2022, real earnings dropped by 2.6% due to the faster rate of inflation.<\/p>\n<p>In a recent CNBC <a href=\"https:\/\/www.dailywire.com\/news\/every-single-business-leader-surveyed-in-new-poll-thinks-a-recession-is-coming\">survey<\/a> of chief financial executives, more than 40% believed inflation is the main external risk factor for their business. Meanwhile, 23% point to Federal Reserve policy and 14% point to the war in Ukraine.<\/p>\n<p>Indeed, the Fed <a href=\"https:\/\/www.dailywire.com\/news\/the-fed-jacks-key-rate-up-half-point-as-inflation-surges\">hiked rates<\/a> by 0.5% last month \u2014 the largest rate increase since May 2000 \u2014 in an attempt to curb rising price levels. The move followed a 0.25% rate hike from near-zero levels three months ago. As employment numbers remain robust, the central bank likely interprets a strong labor market as a sign that officials should keep their plan to raise rates throughout the year.<\/p>\n<p>President Joe Biden and Treasury Secretary Janet Yellen <a href=\"https:\/\/www.dailywire.com\/news\/inflation-is-the-key-political-problem-biden-powell-meet-to-discuss-taming-high-prices\">met<\/a> last month with Fed Chair Jerome Powell. \u201cHe\u2019s wanting to show that he\u2019s fully supportive of the Fed\u2019s move to hike interest rates to deal with inflation,\u201d Desmond Lachman, a former International Monetary Fund official, told The Daily Wire at the time, noting that Biden also needs \u201cto show that he is serious about inflation\u201d from a political standpoint.<\/p>\n<p>Indeed, polls consistently indicate that voters are worried about rising price levels ahead of the midterm elections.<\/p>\n<p>When asked by a Harvard <a href=\"https:\/\/www.dailywire.com\/news\/poll-95-of-voters-say-inflation-is-somewhat-or-very-serious\">survey<\/a> about inflation, 95% of respondents said that inflation is \u201cvery serious\u201d or \u201csomewhat serious.\u201d A plurality \u2014 47% \u2014 said that the Biden administration is responsible. Another <a href=\"https:\/\/www.dailywire.com\/news\/94-percent-of-americans-concerned-about-inflation-overwhelmingly-trust-republicans-to-handle-it-poll\">poll<\/a> from The Washington Post and ABC News revealed that 94% of Americans were either \u201cupset\u201d or \u201cconcerned\u201d about the impact of skyrocketing inflation. Biden\u2019s approval rating was underwater, with 42% of respondents approving of his work and 52% disapproving.<\/p>\n<p>Amid the Russian invasion of Ukraine, gas prices reached $5 per gallon in the United States on Thursday morning. \u201cIt\u2019s a very visible product \u2014 it\u2019s something that psychologically is quite a big deal, because you fill up your car every week or so,\u201d Lachman added, affirming that the high prices are causing Americans to \u201cpull back\u201d on spending.<\/p>\n<p>On the day of Biden\u2019s inauguration, gas <a href=\"https:\/\/www.dailywire.com\/news\/the-cost-of-gas-has-more-than-doubled-since-the-day-biden-took-office\">cost<\/a> $2.39 per gallon. Yet as Americans contend with the higher fuel prices, the Biden administration is facing criticism for nixing expansions to the <a href=\"https:\/\/www.dailywire.com\/news\/peter-doocy-asks-for-a-straight-answer-on-keystone-gets-the-runaround-from-jen-psaki\">Keystone XL Pipeline<\/a> last year and dragging its feet on issuing <a href=\"https:\/\/www.dailywire.com\/news\/unacceptable-cruz-gop-senators-demand-end-to-oil-and-gas-lease-permit-delays\">oil and gas permits<\/a>. Soaring energy prices raise business\u2019 costs and reduce their profitability \u2014 an effect that ripples through the economy and causes prices for all goods to increase.<\/p>\n<p>When asked about his energy policies in light of the rising prices, Biden has noted his decision to <a href=\"https:\/\/www.dailywire.com\/news\/biden-raid-on-critical-strategic-petroleum-reserve-leaves-lowest-level-in-35-years\">release millions of barrels<\/a> from the Strategic Petroleum Reserve. Meanwhile, Biden has more recently tried to make overtures to leaders of top oil-producing nation Saudi Arabia \u2014 with which the United States\u2019 relationship is <a href=\"https:\/\/www.axios.com\/2022\/06\/07\/democrat-biden-us-saudi-relationship\">currently tense<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Consumer Price Index (CPI) rose 8.6% between May 2021 and May 2022, meaning that inflation surpassed record highs, a Friday morning report from the U.S. Bureau of Labor Statistics revealed. The new figure surpassed the Dow Jones estimate of 8.3% year-over-year inflation \u2014 the same level seen in April 2022, according to CNBC. Inflation &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1510216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1510198","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1510198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1510198"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1510198\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1510216"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1510198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1510198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1510198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}