The Sconi

The U.S. Bureau of Labor Statistics released data that showed the Consumer Price Index increased 7% over the last year, which is the most in four decades.

The bureau released a report on Jan. 12 stating the CPI increased 0.5% in December. Another report on Jan. 18 showed that the real average hourly earnings increased only 0.1% between the months of November and December. More alarming is that the average earnings decreased 2.4% over the last year. 

According to the U.S. Census Bureau, the average household income in the state of Wisconsin is $61,747. A 0.1% increase in wages would move that figure to $62,365.

According to a report by CNBC, the CPI is a good measure of inflation and has been monitored extensively by economists. They take into account data about a number of consumer goods.

A Reuters report said the numbers show that it is the largest inflation increase since 1982 and the Federal Reserve could start raising interest rates by March. The report added that core CPI is still high at a 5.5% annual increase. This excluded food and energy.

The BLS also reported that increases in the index for shelter and used trucks were major contributors to the seasonally adjusted items increase. The food index increased 0.5%, but this was less than previous months.

The largest price increases were energy at 29.3%, gasoline at 49.6% and natural gas at 24.1%.

There was a bright side to the report, however. CNBC reported that fuel prices dropped 2.4% over the last month and gasoline prices fell 0.5%. This is after an increase of 6.1% in both October and November. The energy index also decreased 0.4% last month. There was a 3.5% increase in November. This was the first time the energy index decreased since April 2021.