The Bureau of Labor Statistics released the consumer price index (CPI) for May, which showed inflation of more than 4% from last year.
According to a June 13 Heritage Foundation news release, real earnings have decreased, with weekly earnings adjusted for inflation down 5.1%. Inflation has led to increased interest rates and increased borrowing costs for Americans.
“The debt ceiling negotiations were a missed opportunity to rein in that spending, so far more aggressive actions will be required in the upcoming appropriations process," EJ Antoni, research fellow in the Heritage Foundation's Grover M. Hermann Center for the Federal Budget, said in the release.
The CPI has increased 15%, and is an annualized rate of 6.4%, the release reported. Prices double in less than 12 years at that rate.
The federal budget and U.S. economy could enter a “death spiral” where interest payments on the federal debt could bankrupt the country if changes are not made, the release said.
“Inflation, higher interest rates and even the banking crisis, are all the consequences of runaway government spending," Antoni added, according to the release. "Without meaningful change soon, the federal budget and U.S. economy will enter a death spiral, where interest payments on the federal debt alone will bankrupt the country, and American families will have to pay."
According to a June 13 BLS report, the food index experienced a slight increase of 0.2% in May, with the index for food at home rising by 0.1% following a decrease in April. Within the food category, the index for fruits and vegetables saw a notable increase of 1.3%, while the index for meats, poultry, fish and eggs recorded a decrease of 1.2%, primarily driven by a significant drop of 13.8% in the index for eggs.
Additionally, the dairy and related products index declined by 1.1%, according to the BLS report. However, nonalcoholic beverages showed a 0.7% increase. The index for cereals and bakery products experienced a major increase of 10.7% during the 12-month period.
In terms of food consumed away from home, the index rose by 0.5%, which was driven by a 0.4% increase in the index for full-service meals and a 0.5% increase in the index for limited-service meals, the release said. Over the past year, the food at home index has increased by 5.8%, while the food away from home index has seen an increase of 8.3%.
