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What is inflation and what is the latest US rate?

THERE'S no relief for millions of Americans yet as inflation remains high.

The Consumer Price Index (CPI) rose to 8.6% in May, with shelter, gasoline and food contributing the most to the increase in prices.

The US inflation rate climbed to 8.6% in May 2022

Last month, the US Bureau of Labor Statistics said inflation dropped to 8.3% for April.

The CPI reached 8.5% in March - the largest 12-month increase since December 1981.

People continue to deal with high prices at the pump and supermarket.

Inflation is normal and not uncommon in a healthy economy.

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It becomes a problem when inflation begins to outpace the rate of wage gains and that is what is happening now in the US.

The greater the rate of inflation means your money is worth less because it costs more to purchase goods and services.

The pandemic and the lockdowns which took effect in 2020 are partly responsible for the downturn in the economy.

Russia's invasion of Ukraine is also a factor.

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What is the current inflation rate?

The US Bureau of Labor Statistics said on June 10, that the inflation rate in the US increased to 8.6% in May 2022.

The cost of shelter has risen 5.5% over the past year.

Food prices have increased by 10.1% during the year.

In December 2021, the head of petroleum at GasBuddy said gas prices would be the highest in the first half of this year and that is holding true.

According to AAA, the national price for an average gallon of gas stood at $4.986 as of June 10 - a nearly 60 cent increase from last month.

What is inflation?

Simply put, inflation is more money hunting fewer products.

The price increases affect goods and services.

Many reasons can attribute to this including labor shortages, wage increases, raw material cost hikes, even government spending.

The American economy is taking a hit with increased pricing across the board including basic necessities like gasoline, food and clothing.

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Here are ways to protect your finances from inflation.

Plus, a look at how US inflation compares to other parts of the world.

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