WASHINGTON - U.S. inflation hit a 40-year high of 8.6 percent in the month of May according to data given by the U.S. government on Friday. This makes it the 12th month in a row that the inflation percentage has been above 5%. Food and fuel prices are also soaring up, while China, India, and other countries benefit from Cheap Russian Oil at discounted prices.
While inflation hit a 40-year high, corporate profits actually skyrocketed to a 50-year high with U.S. corporations earnings jumping up 35% in 2021 alone which makes it the most profitable year for corporations since 1950.
The Federal Reserve has been raising interest rates aggressively in order to compensate for the rising inflation with another large interest rate hike set for next week, as well as additional hikes expected in the next few months.
Food prices rose by 10.1 percent, the first time it has increased to over 10% since March 1981 according to the report. Fuel oil more than doubled to 106.7% which is the biggest increase since the Consumer Price Index was started.
"The price of fuel oil and natural gas is working its way through the economy. The issue now is how can we actually make progress... that would improve that?" Biden's economic advisor Brian Deese told CNBC. "We're calling on Congress to move on shipping legislation that would bring down the cost of moving goods overseas".
AAA reported that the national average for the price of a gallon of gas in the United States has reached $4.986, with the price of fuel projected to continue rising with some experts saying that the average could soon hit $6 a gallon.
"We're calling on Congress to move on shipping legislation that would bring down the cost of moving goods overseas," he said.
Patrick De Haan, who is the head of the gas price monitoring service Gas Buddy stated "It’s been one kink after another this year, and worst of all, demand doesn’t seem to be responding to the surge in gas prices, meaning there is a high probability that prices could go even higher in the weeks ahead".
"It’s a perfect storm of factors all aligning to create a rare environment of rapid price hikes. The situation could become even worse should there be any unexpected issues at the nation’s refineries or a major hurricane that impacts oil production or refineries this summer" he added.
Andrew Gross, spokesperson for AAA said "People are still fueling up, despite these high prices. At some point, drivers may change their daily driving habits or lifestyle due to these high prices, but we are not there yet".
While inflation hit a 40-year high, corporate profits actually skyrocketed to a 50-year high with U.S. corporations earnings jumping up 35% in 2021 alone which makes it the most profitable year for corporations since 1950.
The Federal Reserve has been raising interest rates aggressively in order to compensate for the rising inflation with another large interest rate hike set for next week, as well as additional hikes expected in the next few months.
Food prices rose by 10.1 percent, the first time it has increased to over 10% since March 1981 according to the report. Fuel oil more than doubled to 106.7% which is the biggest increase since the Consumer Price Index was started.
"The price of fuel oil and natural gas is working its way through the economy. The issue now is how can we actually make progress... that would improve that?" Biden's economic advisor Brian Deese told CNBC. "We're calling on Congress to move on shipping legislation that would bring down the cost of moving goods overseas".
AAA reported that the national average for the price of a gallon of gas in the United States has reached $4.986, with the price of fuel projected to continue rising with some experts saying that the average could soon hit $6 a gallon.
"We're calling on Congress to move on shipping legislation that would bring down the cost of moving goods overseas," he said.
Patrick De Haan, who is the head of the gas price monitoring service Gas Buddy stated "It’s been one kink after another this year, and worst of all, demand doesn’t seem to be responding to the surge in gas prices, meaning there is a high probability that prices could go even higher in the weeks ahead".
"It’s a perfect storm of factors all aligning to create a rare environment of rapid price hikes. The situation could become even worse should there be any unexpected issues at the nation’s refineries or a major hurricane that impacts oil production or refineries this summer" he added.
Andrew Gross, spokesperson for AAA said "People are still fueling up, despite these high prices. At some point, drivers may change their daily driving habits or lifestyle due to these high prices, but we are not there yet".
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