Civic Register
| 2.10.22

Inflation Surged to a 40-Year High of 7.5% in January

How do you feel about the rise in consumer prices?

What’s the story?

  • The Bureau of Labor Statistics reported Thursday that the all items consumer price index rose by 7.5% over the last 12 months through January. That’s the highest rate of inflation since a comparable period ending in February 1982 and more than three times the Federal Reserve’s target rate of 2%.
  • Month-to-month consumer prices rose by 0.6% in January on a seasonally adjusted basis. That’s up slightly from the 0.5% rate measured in December but down relative to the 0.8% rate measured in November.

What goods did prices increase the most for?

  • Here’s a rundown of the common items which have seen the largest increase in inflation year-over-year (notable monthly changes in parentheses):
  • Fuel oil prices increased 46.5% over the last 12 months.
  • Used cars and trucks increased 40.5%.
  • Gasoline prices for all types of gas increased 40%.
  • Utility gas service (piped) increased 23.9%.
  • Propane, kerosene, and firewood increased 22.6%.
  • Lodging away from home increased 20.5%.
  • Furniture and bedding increased 17%.
  • Beef and veal increased 16%.
  • Pork increased 14.1%.
  • Electricity increased 10.7%.
  • Tools, hardware, outdoor equipment, and supplies increased 10.7%.
  • Citrus fruits increased 10.6%.
  • Chicken increased 10.3%.
  • Fish and seafood increased 9.6%.
  • Infants’ and toddlers’ apparel increased 8.8%.
  • Coffee increased 8.6%.
  • Fresh fruits increased 8.2%.
  • Cereals and bakery products increased 6.8%.
  • Milk increased 6.8%.
  • Men’s apparel increased 6.6%.
  • Frozen fruits and vegetables increased 5.5%.
  • Women’s apparel increased 5.4%.

What is inflation and how is it measured?

  • Inflation is a measure of the decline of purchasing power for a given currency over time, which in the U.S. means that a dollar effectively buys less than it did in prior periods because prices rise.
  • The most common way inflation is measured is through the Consumer Price Index for Urban Consumers (CPI-U), which shows changes in prices paid for a “representative basket of goods and services” by an urban consumer group representing about 93% of the U.S. population.
  • CPI-U includes food, energy, commodities like cars and clothes, plus services such as rent and healthcare; and the relative importance of each to the overall basket shifts according to its proportion of all spending in a given month. This overall number is known as “headline” CPI, although economists also track a metric called “core” CPI which excludes food and energy because those categories tend to have more volatility.
  • The Federal Reserve aims to keep inflation at about 2% as part of its dual mandate of promoting stable prices and full employment, as a modest amount of inflation is viewed as an optimum policy in terms of encouraging consumer spending without penalizing savings and investment. When inflation starts to get out of control, the Fed raises interest rates to encourage more savings and less consumer spending.


— Eric Revell

(Photo Credit: iStock.com / sefa ozel)

  • 84
    Jan
    02/24/2022

    @Darkside is correct about Corporations cashing in and contributing to inflation. I note Bernie Sanders has called out Corporations on inflation also. It’s more than the supply chain. And it’s atrocious. And what about the tax code which seems to favor oligarchs and corporations? I think there should be a major revamp of the tax code. I believe that the IRS’ ability to go after the oligarchs and corporations had been severely weakened by several administrations.

  • 25.7k
    Frank_001
    02/22/2022

    @Leslie wrote: "India is investing $10B to become self sufficient in semiconductor chip manufacturing. Why is the US not doing something similar. With chips used in everything from cars to electronic devices it would help inflation and the economy.* Would you believe it's the fear of becoming Socialist? No? Would you believe it's Crony Capitalism? No? Would you believe it's a dysfunctional government due to polarizing politics due to Crony Capitalism? No? Would you believe America is too cheap to pay appropriate salaries and wages? No? Well, then would you believe Americans won't do the work for minimun wages? Well, then there we have it, Chief! It's those greedy American workers who not only want salaries substantially greater than minimum wage, they want benefits, sick leave, parental leave, and, not only Federal Holidays off but, can you believe it, paid vacations. Max, you're really smart! Thanks, 99. Props to Maxwell Smart "Get Smart" Writers: Mel Brooks, Buck Henry, Arne Sultan, James Komack, Chris Hayward, Leonard B. Stern * https://opengovasia.com/10-billion-boost-for-semiconductor-manufacturing-in-india/"

  • 458
    Linda
    02/22/2022

    How do you feel about the rise in consumer prices? I'm furious. It's all simply price gouging. There is no competition for American corporations, so they can rape, pillage and burn to their hearts content. This is exactly what government is supposed to be regulating and they do nothing. These are evil people who are destroying the country for anyone but the super wealthy. Raise their tax rate back to 80% where it belongs and get rid of these clowns who want 98% of the population to be their slaves. Unacceptable behavior!

  • 142
    John
    02/22/2022

    @Leslie, it’s a shame, isn’t it? I truly think it’s because every time a focused and coherent effort is made to boost U.S. economic competitiveness in one area or another, the politicians and interest groups from all sides try to pack any detailed plan set forth with pork, pet projects, and unrelated policy items. As a result, the plan/bill becomes highly politicized and loses at least half of its support. I don’t mean to sound cynical, but I think that’s the answer to that question.

  • 3,405
    Adel
    02/22/2022

    We all hate it and we will all pay it until the crooks are caught and sent to prison!

  • 148
    Ron
    02/22/2022

    If you look at the situation as a whole, its not surprising.

  • 69
    Michael
    02/19/2022

    Basic Government, hmmmmmmmm really . It is a political parties fault, when you shut down a major part of our energy sector with a stroke of a pen , what do you think will happen. Gas sky rockets , heating your home gets more expensive, and electricity goes up. I ask who shut down our energy? Not to mention any names “ BIDEN” ,

  • 340
    Bill
    02/18/2022

    The escalating inflation under President Brandon has dire consequences for our lower and middle classes.

  • 276
    Mark
    02/18/2022

    With have One Fake President, two we have a Idiot in that office, and three the hole Cabinet need to be replaced lol joke that Transportation Sexturary what a joke.

  • 255
    mamiller1101
    02/17/2022

    First, what most people don't realize is that inflation is cyclical. It has been artificially kept low with tax cuts that have only increased the deficit. COVID has raised prices throughout the country. We could argue that the mishandling of the pandemic has only exasperated the problem, but even I wouldn't put the blame on either president. I lived through the late seventies and early eighties. This level of inflation is a pussycat compared to them. Even Reagan had to deal with high levels of inflation until the cycle ran its course.

  • 314
    Jane
    02/17/2022

    Strongly disagree with the decisions since January 2021 that have negatively affected the USA economy. Big mistake to stop USA fuel independence activity. Wrong to order "certain" people to not work while many other jobs (food, health care, transportation, infrastructure, utilities, etc.) are considered essential. Increase in cost of food and most items is not in the basic product made (farmers, ranchers, drillers, etc.) and sold but in the components (transportation, fuel, warehouses, manufacturing, sales / stores, and of course wages). Basic economics teaches that price is determined by 3 things - quality, effort to produce (hours), and cost to produce. It is sad and wrong that our nation has gone from a robust job market (employers had most of the workers needed), an efficient delivery network, and lower costs for products.

  • 590
    Alexandra
    02/16/2022

    EVERYTIME I fill my tank in San Diego N.County, I shout “THANK YOU Joe Biden & your Voters!!!!!!!!! On Day 1, he shut down American energy independence. W/O more energy use w/economy getting back to work, GAS PRICES & utility bills started to climb. I have ZERO respect for an administration & the Dems who put the American people LAST! Our food has skyrocketed because those trucks that transport goods must pay more & EVERY company in the food chain has seen huge price increases. IF YOU voted for this administration, you are to BLAME FOR our economic $hit$how!! THANKS for nothing!

  • 468
    burrkitty
    02/15/2022

    Predicted by economists throughout the pandemic. It’s not political. It’s just a thing that is happening.

  • 8,978
    Charles
    02/15/2022

    Does any one purchase anything and say "please charge me more?"

  • 45
    Susan
    02/15/2022

    At least 85% of these problems can be traced to the pandemic. With people off work and so many stores and restaurants closed, money was being spent to buy things over the internet. This increased the demand on shipping by 33% or more. Shipping was experiencing problems before the pandemic; this made the problem worse. Now, demand for most items has increased; yet, there is still a shortage of people able/willing to supply these needs—again due to the pandemic.

  • 1,806
    Shari
    02/15/2022

    A lot of the inflation is being caused by corporate greed. Prices are rising as corporations are recording record profits but claiming they need to raise prices due to supply chain or raising employee pay. These corporations need to be held to account and it will not happen as long as the members of Congress are being bribed by these corporations. Vote for independent candidates that do not take corporate bribes.

  • 285
    Gale
    02/15/2022

    I am certainly not happy about the inflation we are currently experiencing. I understand, however, that this inflation is largely driven by events over which we had limited control. The pandemic caused an unprecedented disruption to the workforces of many nations and international supply chains. As we have gained more control over the pandemic and reopened our economies, demand and supply are not yet in synch. When demand is higher than supply, prices inevitably rise. (I do not discount the possibility that there is some price gouging at play as well.) I believe this will level out relatively soon. Unfortunately, some people either don't understand or don't care that actions such as blocking commerce between the US and Canada will inevitably worsen the problem and cause prices to spike higher. It would be nice if we could all just cooperate for the benefit of everyone instead of using inflation as a political cudgel when a once in a century pandemic is the real culprit.

  • 3,697
    Kevin
    02/15/2022

    The billionaires are not suffering, but they're the ones raising the prices anyway.

  • 2,937
    Arlys
    02/14/2022

    It's all about greed. No "ifs", "and", or "buts" about it. Companies don't want to pay out living wages much less delivery charges and use lack of employees as an excuse. Sadly, the stimulus packages didn't help matters any as companies and landlords wanted their not so fair share of the money on top of the "bailouts" and "subsidies" they already receive on a regular basis. It sucks but that is the way it is. Things are not going to change any time soon until capitalism is brought under control and regulated. Don't know about you but I am charged a monthly fee of $15.00 for just being a customer at my electric company. This is on top of usage charges and various taxes. What makes it worse is that I don't have any options. Now you know how the rich get richer and the poor get poorer. Think about this and do your homework before you go and vote.

  • 809
    DeWitt
    02/15/2022

    Joe Carter is on track to turn America into the Third World pigsty the Left have always dreamed of. Just think, three more years of this excruciatingly slow train wreck. Somewhere Jimmy and the Mrs. are about to break a hip dancing at being rescued from "the worst" list by "Everyman" Joe.