With Inflation At 40-Year National High, Here's What PA Is Paying More For

PENNSYLVANIA — Inflation continues to be a stubborn problem in the U.S. and Pennsylvania. 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 Northeast region, which Pennsylvania is part of, saw a 7.6 percent increase in the cost of all items over the last year -- the largest increase since December 1981.

Month-to-month, prices in the Northeast region rose by 1.2 percent from May to June 2022.

The largest drivers of the increase were gasoline, shelter, energy, and food. Nationally, the gasoline index rose 11.2 percent in June. In the Northeast region, the energy index increased 5.5 percent over the month, and food prices rose 0.6 percent in the month of June.

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.

Buying food at the store cost people 10.1 percent more in June 2022 than in June 2021 in the region.

Cereals and bakery products have gone up in price 13.2 percent since then, data shows. The cost of dairy and related products went up 10.8 percent, and nonalcoholic beverages and beverage materials is up 10.1 percent.

Household energy costs in the Northeast Region are now 31.9 percent higher than last June, with gas service seeing the biggest price increase (38.8 percent).

The BLS released more detailed Consumer Price Index data for the Philadelphia-Camden-Wilmington area in July 2022, but does not have recent data for other areas.

In this region, prices were up 2.3 percent over the past 2 months and up 8.8 percent over the past year.

Philadelphia-area residents saw a 1.8 percent percent increase overall in the price of food over the month of June. Over the year, food prices were up 10.1 percent, which is the largest increase since Feb. 1981.

Energy prices in the Philadelphia area were up by 46 percent. Utility (piped) gas service prices were up 44.3 percent, the largest increase since August 2001. Electricity prices were up 19.1 percent, the largest increase since September 1984.

Rent went up 5.1 percent over the year, and the cost of transportation was up 17.4 percent, driven by a 59.3 increase in gasoline prices. The cost of commodities went up 13 percent since June 2021.

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.

Patch's data editor, Rich Scinto, contributed to this report.