U.S. consumers are seeing the highest inflation rate in 40 years.
Figures just released by the Bureau of Labor Statistics reveal that the consumer price index — the measure of how much goods and services cost from month to month — jumped 7.5% compared to the previous year.
This is the highest rate of inflation since February 1993, when the inflation rate was 7.6%.
Local economist Jim Rounds of Rounds Consulting told ABC 15 that while the federal reserve will take action to curb inflation, consumers should expect to see increasing costs — at least — until the end of the year.
“It’s going to take the rest of this year, if not more because the things that caused the high inflation like the workforce shortages, the supply chain problems that we've been hearing about, those imbalances aren't going to work themselves out for a while," he said.
What does rising inflation mean in terms of real dollars?
The Bureau of Labor Statistics also produces an average cost of goods reports that lists costs for many consumer commodities.
In Arizona, 87 octane gasoline is averaging $3.64 per gallon, an increase of $1.30 from the same time last year.
People are paying more for most meat products at the grocery store.
Bacon is averaging $7.22 a pound, an increase of $1.39. Sirloin steak is now averaging almost $11 a pound, up $1.68 since last January.
Dairy products are also seeing cost increases. Milk is up 32 cents to $3.79 and eggs are up 46 cents to $1.93.
What about wages? Data shows they are up across the board by 5.7% from last year. But when the numbers are adjusted for inflation, called real earnings, wages are down 1.7%.