“It’s important, but in a broader sense, 8.5 to 8.3 is not much.”
Diane Swonk, chief economist at Grant Thornton, on the latest inflation data — which shows the rate of inflation slightly slowing in April compared to March (from 8.5% to 8.3%), even though inflation itself remains historically high.
may 11, 2022
- Why It Matters: Higher inflation means your money buys you less as the rising price of goods outpaces the average rise in wages. This can be caused by a number of factors; *one* of them is low supply and high demand driving prices higher.
- The items in the economy currently most impacted by inflation, according to the recent reading? Many popular food products (chicken, eggs, dairy, etc.).
- The core inflation rate (this data strips out energy and food prices, which can be very volatile month-to-month) shows inflation still remains steady, which is important information for the bigger picture. In order to see a lower inflationary environment, it will take time; it's not a one-and-done fix!
A few highlights from this month's data:
"... dairy and related products rose 2.5 percent, its largest monthly increase since July 2007."
"The index for airline fares rose 33.3 percent over the last year, the largest 12-month increase since the period ending December 1980."
"The energy index rose 30.3 percent over the last year, and the food index increased 9.4 percent, the largest 12-month increase since the period ending April 1981."