Inflation At 40-Year-High Nationally: How Illinois Compares

ILLINOIS — Inflation continues to be a stubborn problem in the U.S. and in Illinois. Nationally, the Consumer Price Index increased 1.3 percent from May to June and 9.1 percent for the 12-month period; both figures were higher than what many economists predicted.

The 12-month increase was the largest on record since November 1981, according to the Bureau of Labor Statistics. The Midwest region, of which Illinois is part, experienced 9.5 percent inflation over the 12-month period. The May to June increase was 1.6 percent.

The largest drivers of the increase were gasoline, shelter and food. Nationally, the energy index increased by 12.3 percent from May to June. The Midwest region experienced a 14.8 percent bump in the gasoline index during the same time period.

Falling gas prices in July may temper inflation for next month’s consumer price index report, so long as the price at the pump continues to drop, according to the New York Times.

Food prices in the Midwest region increased 0.8 percent from May to June and 9.1 percent for the 12-month period. Animal proteins increased 11.9 percent over 12 months, and food at home costs were up 10.8 percent.

Residential natural gas costs were up nearly 48.6 percent in the Midwest region over 12 months, and electricity increased 10.6 percent.

Economists worry that inflation has become stubborn and that the Federal Reserve will continue to increase interest rates in an effort to get it under control, according to the Washington Post.

Meanwhile, the unemployment rate remained at 3.6 percent for the fourth month in a row, according to the Department of Labor Bureau of Labor Statistics. Total non-farm employment rose by 372,000 positions in June.

President Joe Biden said inflation is still “unacceptably high,” but will likely improve when next month’s figures come out, since gas prices have dropped in July. He touted the strong jobs report as proof that the U.S. was in a strong position to combat inflation and economic fallout from Russia’s invasion of Ukraine without giving up economic gains made over 18 months.