Inflation At 40-Year-High Nationally: How CT Compares

CONNECTICUT — Inflation continues to be a stubborn problem in the U.S. and Connecticut. Nationally, the Consumer Price Index increased 1.3 percent from May to June and 9.1 percent for the 12-month period; both figures were higher than what many economists predicted.

The 12-month increase was the largest on record since November 1981, according to the Bureau of Labor Statistics. The New England region, which Connecticut is part of, experienced 7.9 percent inflation over the 12-month period. The May to June increase was 1.2 percent.

The largest drivers of the increase were gasoline, shelter and food. Nationally, the gasoline index rose 11.2 percent from May to June. The New England region experienced a 7.6 percent bump in the gasoline index during the same time period.

Falling gas prices in July may temper inflation for next month’s consumer price index report, so long as the price at the pump continues to drop, according to the New York Times.

Food prices in the New England region increased 0.6 percent from May to June and 9.1 percent for the 12-month period. Animal proteins increased 9.8 percent over 12 months and dairy was up 10.8 percent. Alcoholic beverages experienced the lowest 12-month price hike at just 4 percent.

Residential natural gas costs were up nearly 39 percent in the New England region over 12 months, and electricity increased 15.6 percent.

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Economists worry that inflation has become stubborn and that the Federal Reserve will continue to increase interest rates in an effort to get it under control, according to the Washington Post.

Meanwhile, the unemployment rate remained at 3.6 percent for the fourth month in a row, according to the Department of Labor Bureau of Labor Statistics. Total non-farm employment rose by 372,000 positions in June.

President Joe Biden said inflation is still “unacceptably high,” but will likely improve when next month’s figures come out, since gas prices have dropped in July. He touted the strong jobs report as proof that the U.S. was in a strong position to combat inflation and economic fallout from Russia’s invasion of Ukraine without giving up economic gains made over 18 months.