The May consumer price index, measuring the cost of food, housing, gasoline, utilities and other goods, rose 5% from the previous year, according to the US Labor Department. Food prices have increased by 2.2% over the past 12 months, and gasoline has swelled by 56.2%, recovering from pandemic dips.
While Federal Reserve officials have said these price increases are “transitory,” many Americans, particularly retirees, still worry about prices creeping up, as per a report by CNBC.
Meanwhile, Americans’ expectations for year-ahead inflation grew to 4% in May, the seventh consecutive monthly increase, according to a report by the Federal Reserve Bank of New York.
“Inflation is the silent killer,” said certified financial planner Brad Lineberger, president of Seaside Wealth Management in Carlsbad, California. “It can erode purchasing power to the point where someone wakes up and can’t live the lifestyle they once did because they can’t afford to.”