Forecasters say inflation likely hit a new, four-decade high last month, fueled in part by record high gasoline prices. Gas prices have since fallen, but overall inflation is still elevated.
Consumers are watching their pennies at the gas station and grocery store as consumer prices surged 8.6% in May, pushing the annual inflation rate to its highest in over 40 years.
Inflation in March was the highest since December of 1981, with prices up 8.5% from a year ago. Rising prices are especially hard on low-income people, who spend more of their money on necessities.
Businesses across the country, from restaurants to retail, must decide when, not if, to raises prices and by how much.
Consumer prices were 6.2% higher in October than a year ago as inflation continues to chip away at the buying power of households across the country.
Makers of everything from pasta sauce to vinegar say it's getting harder to find glass bottles for their products, and it's leading to higher prices.
A surge in prices of used cars was a major driver of inflation again in June, but there are some signs those price hikes may be shifting into reverse.
The Labor Department says consumer prices jumped 5% for the 12 months ending in May. That's the sharpest increase in nearly 13 years, as the economy rebounds from the pandemic recession.
Prices for a range of goods from used cars to bacon surged last month, pushing consumer inflation to 4.2% in April, the highest since September 2008.
Consumer prices jumped last month as businesses struggled to keep pace with booming demand, but the Biden administration and the Federal Reserve say the uptick in inflation is likely to be temporary.
Consumer prices rose 0.4% in August and 1.3% over the last 12 months. Some economists say that official measure understates inflation, because the pandemic has changed both what and how we buy.