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Inflation Surges to Record 9.1 %, Food and Energy Even Higher

Inflation has surged beyond Dow Jones estimates to surpass record highs at 9.1% year-over-year for the CPI, with the cost of food, energy, natural gas, and vehicles soaring even higher.

Inflation blasts past estimates to hit record 9.1%

Inflation in the United States reached a new high of 9.1% from June 2021 to June 2022, blasting past the Dow Jones estimate of 8.8 percent. However, the real costs to consumers for some goods is even higher.

The numbers released on Wednesday reflect the Consumer Price Index (CPI) by the US Bureau of Labor Statistics and show the highest inflation rate since 1981.

The rate of 9.1% in June reflects a year-over-year number and is up 1.3% since May, which had an inflation rate of 8.6 percent. Economists had expected an inflation rate of 8.8 percent. The latest numbers reflect the 13th straight month of inflation higher than five percent.

The Federal Reserve is attempting to fight inflation, raising its target rate by 75 basis points in June, the biggest single-meeting hike since 1994. When the Fed meets in July, two weeks from now, it is anticipated that it will implement another 75 basis point increase.

Specific items that are higher than the inflation rate

The real year-over-year prices consumers are paying for some goods is significantly higher than the inflation of 9.1% the CPI reflects.

The year-over-year price of food rose 10.4%, while the price of energy overall increased 41.6%, and new vehicles jumped 11.4%, according to the Bureau of Labor Statistics, via the Daily Wire. Specifically, electricity climbed by 13.7%, and natural gas rose by 38.4%.

Prices for food at home (grocery store prices) climbed 12.2% year-over-year and rose 1 percent from store prices in May. Meats are up 13.8%, dairy up 13.5%, and cereals up 12.12%, CNN reported.

Clothing prices rose 5.2 percent year-over-year and 0.8 percent from May.

Gasoline dips but still 60% higher than a year ago

The price of a gallon of regular unleaded gasoline dipped slightly month-over-month dropping to a national average of $4.631 as of July 13, 2022, compared to $5.014 in May, according to the statistics at AAA. However, gas was $3.146 per gallon last July – 47% lower.

However, gasoline prices saw a 59.9 percent increase from June 2021 to June 2022 according to the Labor Bureau numbers.

Drivers in California are currently paying an average of $6.027 per gallon, with Nevada paying the second-highest prices in the Lower 48 at $5.359 and Oregon third at $5.354.