You likely won’t need to be told this if you’ve been shopping lately, but inflation is getting worse. That’s the word from the Bureau of Labor Statistics, which reported Wednesday that inflation came in hotter than expected for the third report in a row.
The Bureau’s Consumer Price Index for All Urban Consumers report showed prices are 3.5% higher compared to a year ago; according to the department, that means you’re spending more on food, gas, shelter and most other basic needs.
Moody’s Chief Economist Mark Zandi also reported Wednesday morning, “Americans are spending $227 more a month compared to a year ago, $534 more compared to 2 years ago, and $1,037 more compared to 3 years ago.”
Zandy added that incomes, however, have also risen: “up, $250, $784 and $1,069 per month, respectively.”
What the BLS data also means is the Fed will likely not be able to cut interest rates in June, which means the cost of borrowing money with credit cards, car loans and mortgages will stay high — and you won’t see any relief at the pump or at the Piggly Wiggly.