Food, cars, gas, rent and other everyday expenses are not likely to get cheaper any time soon. New data released by the Labor Department on Friday showed that inflation reached a new 40-year high of 8.6 percent in May, placing even more pressure on the Federal Reserve and the Biden administration to drive prices back down. The Consumer Price Index rose 1 percent from April, and headline inflation grew the fastest since late 1981. The sharp rise is largely due to the U.S. economy’s supercharged post-pandemic growth but it’s hitting Americans hard. Grocery bills have risen by an annual rate of more than 10 percent this year and a gallon of regular unleaded gas is at about $4.98, according to AAA. Russia’s war in Ukraine has contributed to the spike in global energy prices. The Fed increased interest rates by half a percentage point in May and may do the same again this month as they try to calm inflation.
