Consumer price index points to historic increase in heating oil prices

The cost of heating oil has risen 106.7 percent since November 2021, according to the May Consumer Price Index released today by the U.S. Bureau of Labor Statistics. Since November 2021, the cost of oil has more than doubled and it is the largest increase in costs since the CPI began in 1935.

Overall, the consumer price index for all urban consumers rose a staggering 1.0% in May, seasonally adjusted. The increase in April was 0.03%.

Consumer price index for May 2022

Over the past 12 months, the index for all items rose 8.6 percent before seasonal adjustment.

The increase was broad-based, with the indices for shelter, gasoline and food being the largest contributors. After declining in April, the energy index rose 3.9 percent during the month, with the gasoline index rising 4.1 percent and other major component indices rising as well. The food index rose 1.2 percent in May, while the home food index rose 1.4 percent.

The index for all articles less food and energy rose by 0.6 percent in May, the same increase as in April. While nearly all major components rose during the month, the largest contributors were lodging, airfare, used cars and trucks and new vehicles indices. Indices for medical care, household furniture and operations, recreation and clothing also rose in May.

The index for all items rose 8.6 percent for the 12 months ended May, the largest 12-month increase since the period ending December 1981.

Historic increase in fuel prices

In addition to the increase in heating oil, other energy costs, including gas (pipeline) services, increased by 30.2% and electricity costs, up 12.0%. Petrol prices have increased by 48.7%.

Food prices are rising

The cost of food (home) has increased by 10.1%, of which 1.2% in May 2022. That is the largest percentage increase since 1980. The cost of food away has increased by 11.9%, including 1.4 % in May 2022. That is the largest percentage increase since 1981.

Food price breakdown for restaurants

Overall, the food index rose 1.2 percent in May, after rising 0.9 percent in the previous month.

The out-of-home food index rose 7.4 percent in the past year, the largest change in 12 months since the period ending November 1981. The full-service meal index rose 9.0 percent in the past 12 months and the index for meals with limited service increased by 7.3 percent last year. The index for food at employee locations and schools has fallen 30.5 percent in the past 12 months, as a result of widespread free lunch programs.

Increases excluding food and energy

The index for all items less food and energy rose by 0.6 percent in May.

The lodging index rose 0.6 percent in May, the largest monthly increase since March 2004. The rent index rose 0.6 percent during the month, the same increase as in April, and the owner-equivalent rent index also rose 0.1%. 6 percent. The outdoor housing index rose 0.9 percent in May after larger gains in recent months.

The air fares index continued to climb, rising 12.6 percent in May, after rising 18.6 percent in the previous month.

The used car and truck index rose 1.8 percent in May, after falling in each of the previous three months. The used car and truck index is up 16.1% since November 2021.

The new vehicle index rose 1.0 percent in May after rising 1.1 percent in April. The new vehicle index has increased by 12.6% since November 2021.

What does the CPI mean?

The US Bureau of Labor Statistics measures the prices consumers pay for a figurative “basket” of goods and services. The resulting numerical data can be used to measure the cost of living and the degree of inflation (or deflation). Changes are expressed in percentages and are indicative of economic health.

Brief explanation of the CPI

The consumer price index (CPI) measures the change in the prices consumers pay for goods and services. The CPI reflects spending patterns for each of the two population groups: all urban consumers and urban wage earners and white-collar workers. The all-urban consumer group represents approximately 93 percent of the total US population. It is based on the expenditure of nearly all residents of urban or metropolitan areas, including professionals, the self-employed, the poor, the unemployed, and retirees, as well as urban wage earners and white-collar workers. Not included in the CPI are the spending patterns of people living in rural non-urban areas, farming families, people in the armed forces and people in institutions such as prisons and psychiatric hospitals.

The US Bureau of Labor Statistics tabulates increases and decreases in 8 main categories: food and beverage, housing, clothing, transportation, medical care, recreation, education, and communications.

Follow us on Google News for the latest news.

Image: Depositphotos


This post Consumer price index points to historic increase in heating oil prices was original published at “https://smallbiztrends.com/2022/06/consumer-price-index-may-2022.html”

Leave a Reply

Your email address will not be published.