The inflation data from July shows a 5.4% increase — matching last month’s levels.
According to data put out by the Bureau of Labor this Wednesday, inflation last month went up to 5.4% — equaling its rate for June, which was the highest seen since the Great Recession of 2008.
Over the past twelve months, average energy prices have gone up by 23.8%, with fuel and gasoline getting a price hike of 39.1% and 41.8% respectively. Meanwhile, prices for used autos also went up by 41.7%.
“I’m laughing at everyone for putting their money in stocks and Bitcoin,” joked Senate candidate J.D. Vance. “I purchased a 1999 Honda Civic just last year and now it is worth $2 million.”
Beyond the transportation and energy sectors, food companies are raising prices in a drive to match increasing prices.
In Tyson Foods’ Q3 earnings conference call, CEO Donnie King informed his investors that the company has “witnessed unprecedented and accelerating inflation” threatening its whole business. It will therefore increase retail prices on Sept. 5 — even though it had raised prices before for restaurant customers.
Nestlé — the world’s biggest food and drink company — announced that it too would increase prices to keep up with inflation. CEO Mark Schneider said that “what we have seen this year is a sort of turning point, where after many years of lower inflation, all of a sudden it quickly and strongly accelerated.”
As we recently explained, Americans are seeing lowering wages due to the affects of inflation — despite better wage growth after COVID-19 and the lockdown and recession.
The Bureau of Labor numbers reported just last month that “average hourly income” in the United States increased by 3.6% between June of last year and June this year. Nevertheless, when looking at year-over-year changes in consumer prices, “true hourly earnings” have gone down by 1.7% over the previous year.
Vance said that “the Trump years provided the first sustained wage growth for middle class and working class Americans in a long time.” Inflation “will kill that progress.”
Author: Steven Sinclaire