US inflation surges to new 41-year record high, gas prices continue to soar

Shoppers walk outside an outlet mall in Rehoboth Beach, Del., Saturday, June 4, 2022. President Joe Biden faces a delicate trade-off as he tries to help his fellow Democrats in the upcoming midterm elections. He needs U.S. consumers to pull back just enough so that inflation eases, but not so much that the economy risks plunging into a recession. (AP Photo/Patrick Semansky)

Shoppers walk outside an outlet mall in Rehoboth Beach, Del., Saturday, June 4, 2022. President Joe Biden faces a delicate trade-off as he tries to help his fellow Democrats in the upcoming midterm elections. He needs U.S. consumers to pull back just enough so that inflation eases, but not so much that the economy risks plunging into a recession. (AP Photo/Patrick Semansky)

OAN NEWSROOM
UPDATED 8:23 AM PT – Friday, June 10, 2022

US inflation has reached a new 41-year record high. On Friday, the Labor Department released the Consumer Price Index (CPI) report for May. According to the data, inflation increased 8.6 percent from a year ago. This is worse than economists expectations of 8.3 percent.

Meanwhile, on a monthly scale, consumer prices rose 1 percent in May from April. The CPI measures a range of prices from gas, groceries, cars and furniture to name a few. The Labor Department said the largest contributors were the indexes for housing, airline fares, used cars and new vehicles.

The Federal Reserve has already raised interest rates in an effort to offset rising inflation with more hikes planned throughout the year. However, economists are warning of a recession later this year.

Meanwhile, gas prices are also soaring to a new record high. According to AAA, the national average price per gallon of gas has risen to $4.99. This is up from $4.97 cents on Thursday and about $4.76 a week ago.

The highest average price for gas is in California, where residents are paying an average of $6.40 per gallon. There are now more than 20 states where residents are paying an average of %$5 or more for a gallon of gas. President Joe Biden has tapped the nation’s Strategic Petroleum Reserve, yet fuel costs continue to rise.

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