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

NEW JERSEY — Inflation continues to be a stubborn problem throughout New Jersey, the United States and the world. Nationally, the Consumer Price Index increased 1.3 percent from May to June and 9.1 percent for the 12-month period — both figures exceeding what many economists predicted.

The 12-month increase was the largest on record since November 1981, according to the Bureau of Labor Statistics. Meanwhile, the Producer Price Index — a measure of price changes for domestic producers — increased 11.3 percent in June from a year ago, marking the highest annual increase since the record 11.6 percent in March. The Producer Price Index measures inflation before it hits consumers.

In the Mid-Atlantic region — which includes New Jersey, New York and Pennsylvania — prices for consumers rose 7.6 percent from June 2021 to last month, according to federal data. The May-to-June increase was 1.3 percent.

The largest drivers of the increase were gasoline, shelter and food. Nationally, the gasoline index rose 11.2 percent from May to June.

In the larger Northeast region, which also includes the Garden State, food and gas have faced some of the largest price increases amid inflation. Nationally, the gasoline index rose 11.2 percent from May to June and has increased 59.9 percent in the past year. In the Northeast, the gasoline price index grew 7.5 percent from May to June and 60.1 percent in the past year.

Here's how much prices have increased on food in the Northeast (annual increases reflect June 2021 to last June):

• all food and beverages: 0.6 percent from May to June, 8.8 percent in the past year
• all food: 0.6 percent from May to June, 9.1 percent in the past year
• food at home: 0.3 percent from May to June, 10.1 percent in the past year
• cereals and bakery products: 1.7 percent from May to June, 13.2 percent in the past year
• meats, poultry, fish and eggs: 0.1 percent from May to June, 9.8 percent in the past year
• dairy and related products: 1.7 percent from May to June, 10.8 percent in the past year
• fruits and vegetables: -1.7 percent from May to June, 6 percent in the past year
• nonalcoholic drinks and beverage materials: 0.6 percent from May to June, 10.1 percent in the past year
• other food at home: 0.7 percent from May to June, 11.7 percent in the past year
• food away from home: 1 percent from May to June, 7.1 percent in the past year
• alcohol: 0.2 percent from May to June, 4 percent in the past year

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.

But even members of President Biden's party — especially Democrats running for higher office — recently called for greater action to combat inflation. Rep. Tim Ryan (D-OH), who is running for Senate, called for a tax cut. Pennsylvania Lt. Gov. and Senate candidate John Fetterman tweeted, "We need bold action NOW to make more (expletive) in America, fix our broken supply chains, and take on corporate greed to bring down the cost of everything, for everyone."