A major inflation indicator monitored by the Federal Reserve hit a 40-year high this week, signaling ongoing price woes for Americans still reeling from sticker shocks at nearly every conceivable consumer point.
The Bureau of Economic Analysis said in its June personal income analysis that the personal consumption expenditures price index for that month “increased 6.8 percent from one year ago, reflecting increases in both goods and services.”
That figure represents the highest year-over-year jump in the PCE since 1982, a 40-year record that comes amid looming fears of a significant economic recession.
Specific industry breakdowns were even more stark. “Energy prices increased 43.5 percent while food prices increased 11.2 percent,” the bureau reported.
“Excluding food and energy, the PCE price index for June increased 4.8 percent from one year ago,” it added.
High inflation numbers have hit U.S. consumers across industries and products, with energy, food, household good and recreational prices all seeing significant increases throughout 2022.
The news this week of economic contractions in the first two quarters of 2022 have spurred new fears of an imminent recession, though the Biden administration has been attempting to pivot away from those interpretations even as the grim forecasts continue.
The White House earlier this week tried to spin a revised definition of “recession” ahead of what ended up being a negative economic report that fit most working definitions of recession.