Arkansas Trucking Association

Inflation highest since 1981

The consumer price index rose 8.6% in May from a year ago, the highest increase since December 1981. Surging food, gas and energy prices all contributed to the gain, with fuel oil up 106.7% over the past year.

The Bureau of Labor Statistics reported that energy prices broadly rose 3.9% from a month ago, bringing the annual gain to 34.6%; shelter costs rose 0.6% for the month, the fastest one-month gain since March 2004; and finally, food costs climbed another 1.2% in May, bringing the year-over-year gain to 10.1%.

Those escalating prices meant workers took another pay cut during the month. Real wages when accounting for inflation fell 0.6% in April, even though average hourly earnings rose 0.3%, according to a separate BLS release. On a 12-month basis, real average hourly earnings were down 3%.

The latest report dashed hopes that inflation may have peaked and added to fears that the U.S. economy may be nearing a recession.